Transport Sector Retirement Fund Invests R150 Million In A Black, Female-Owned Private Equity Firm

“We believe that investing with an impact lens demonstrates that retirement funds can help to deliver transformative changes through companies such as Heritage Capital.”

Heritage Capital
Heritage Capital

The Transport Sector Retirement Fund (TSRF) was the first institutional investor in Heritage Capital, a 100% black women-owned and managed private equity firm.

Heritage Capital was established in 2015 and is managed by passionate and highly skilled business partners Philile Maphumulo and Xolisile Ntanzi.

The private equity firm has more than R300 million in assets under management.

In 2017, TSRF committed R100 million into Heritage Capital’s maiden fund as an initial investment. An additional R50 million was later committed in 2019 to Heritage Capital to increase the investment to R150m.

 “We are very proud they are doing well under difficult circumstances,” said Joe Letswalo, principal officer at TSRF.

“They have even paid us several dividends. That’s a great achievement by a fund established four years ago.”

TSRF provides members with a means to save for a comfortable retirement and access risk benefits that include death, disability, and funeral benefits. It is a standalone, non-aligned retirement fund and not owned by any insurance company, which assists in maximising members’ returns.

The Fund has about 3 200 participating employers that focus on freight and logistics, including warehousing.

Heritage Capital has a portfolio of five companies across various sectors, with a presence in South Africa.

The company has shares in SSEM Mthembu Medical (38%), General Profiling (30%), Aria Technologies (20%), Avis Forklift Centre (82.3%) and Tailifts SA (82.3%).

It continues to look for potential companies to invest in, mainly in the consumer goods and services sectors, and create more value for its investors while having a positive impact on communities through its investments.

“Heritage Capital is well-positioned to deliver on its long-term strategic goals,” said Maphumulo, managing partner at Heritage Capital.

“Our investment approach is aligned with the objectives of our investors, especially to demonstrate a commitment to responsible investing.

“We are honoured to have an investor such as TSRF that focuses on making an impact in Southern Africa through its investments.”

“We continuosly strive for transformation, the creation of sustainable jobs and improving working conditions within each of our portfolio companies” said Ntanzi, partner at Heritage Capital.

The private equity firm invests in companies with a minimum EBITDA (earnings, before intertest, tax, depreciation, and amortisation) of R15 million, strong growth potential, and capable and passionate management teams.

TSRF is an example of an impact investing fund that fulfils various criteria.

The Fund invests in businesses that aim to deliver meaningful and positive change in Southern Africa.

TSRF seeks to invest in private equity funds that drive positive change by addressing Southern Africa’s most pressing challenges, such as infrastructure shortages.

“Investments such as Heritage Capital are fulfilling our investment criteria,” said Letswalo.

“We believe that investing with an impact lens demonstrates that retirement funds can help to deliver transformative changes through companies such as Heritage Capital.”

Letswalo said the TSRF’s investment in Heritage Capital was transformative.

“We helped to build a 100% black women-owned and managed private equity firm,” said Letswalo.

“We are long-term investors in Heritage Capital, and we are proud of the returns we are generating for our members and pensioners.”

Also read: SA’s Transport Sector Retirement Fund Builds New Vaal Township

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