Investments

Kagiso Trust Investments

From 1985 to 1994 the Kagiso Trust had a readily accessible source of donor funding, predominantly from the European Union. After the normalisation of the political environment in 1994 these sources became increasingly difficult to access as funding was channelled directly through South Africa’s new democratic government.

In order to secure a sustainable source of funding and to leverage existing investments the Kagiso Trust formed Kagiso Trust Investments (KTI) as an investment arm, which it capitalised with the modest reserves it had built up at the time and with a $5-million loan from JP Morgan. KTI used these funds to acquire the radio and publishing assets which gave rise to Kagiso Media.

KTI has since diversified its investment portfolio, with the aim of becoming this country’s pre-eminent empowerment investment banking services group. Apart from its 43.9% investment in Kagiso Media it currently has interests in corporate finance advisory and other financial services, securities trading, foreign exchange and derivatives trading, property investments and facilities management, fleet management services, a private equity fund, asset management and treasury services.

Kagiso Trust owns 55% of KTI, which is now worth R1.6-billion.

One of KTI’s attractions is that it is a company with impeccable black empowerment credentials. But, unlike many other companies, it has ensured this empowerment from the bottom up. And, through the Trust, it makes sure that any benefits are spread as widely as possible. It also places great emphasis on sustainability.