RMB Corvest, in partnership with Thuto Fund 1, acquires a stake in Fundi Capital Proprietary Limited

RMB Corvest, a private equity business in the FirstRand Group, in partnership with Thuto Fund 1, has announced that it has acquired a stake in Fundi Capital Proprietary Limited (“Fundi”), a specialised financial services provider of educational loans and fund administration services.

RMB Corvest, in partnership with Thuto Fund 1 (the “Consortium”), has acquired a minority shareholding in Fundi. The transaction saw the buy-out of certain non-operational shareholders and will see the Consortium partnering with the founding Kitshoff Family and the Public Investment Corporation (“PIC”), both of whom were existing shareholders in Fundi.

Initially founded to provide financial access to education, Fundi has transitioned from being a standard education loan provider to an integrated financial services player in the education sector - focusing on educational loans and fund administration services.  In 2011, Fundi launched its funds administration services business to complement its education finance business. Fundi offers comprehensive funding solutions for education to students, government employees and corporate clients. Its product offering covers a range of educational costs from tuition fees, device loans, study material, food and student accommodation costs. To date, Fundi has assisted over 2 million students in pursuing their higher education dreams and enabled South Africans from all walks of life.

Menzi Khoza, Executive: RMB Corvest, says that Fundi’s offering and experienced management team made it a very attractive investment opportunity. “Given the huge need for Fundi’s products and services in South Africa, and the value of education, we believe that the business has a solid base, well-developed infrastructure and a large, well-diversified customer base. It promises valuable growth, and we foresee sustainable advancement in the education sector.”

Founded in 1996 by Jan Kitshoff Snr, and initially known as Edu-Loan, the business has potential to expand operations in both the lending business and fund administration services and is well positioned to gain market share. Fundi’s headquarters are in Roodepoort, and it has a number of retail branches nationwide (35 countrywide, with 23 located on campus at various universities). The two experienced and long-standing management members, Jan Kitshoff Jnr, appointed as the Fundi CFO in 2023, and the CEO, Mala Suriah, remain at the helm.

Because of Fundi’s position as a leading aggregator of products along with its deep technical expertise and understanding of its customer requirements, it is able to tailor-make specialised financial service solutions that truly add value. “Fundi’s unique approach and strong relationships within its merchant and supplier networks make them a natural partner for us, providing an excellent entry point into the education finance sector,” explains Andrew Sprenger, Executive: RMB Corvest.

Jan Kitshoff Jnr, CFO of Fundi says: “We’re looking forward to partnering with our new shareholders to continue to exceed our customers’ expectations and develop our offerings. Fundi’s products and services remain our focus, and we believe that the value of education in South Africa can be used as a tool for economic growth and societal and personal development.”

Fundi has established itself as a strong and trusted brand in the market. Fundi’s diversified product and service suite contributes to the success of students. “We believe this deal to be a strategic and long-term return investment for both the students and ourselves,” concludes Isaac Mophatlane from Thuto Fund 1.