Specialist boutique asset manager Mergence Investment Managers has opened a licensed subsidiary in Maseru, Lesotho, where it aims to offer an innovative approach to private equity.
Mergence Lesotho MD Semoli Mokhanoi said in a statement that the company has adapted and tailored the traditional private equity model it has used in Southern African Development Community countries by offering pension funds and other institutional investors the opportunity to ensure that the bulk of their commitments are invested in domestic market focused opportunities rather than offshore products.
“What is more, the deals are aligned with the National Development Economic Plan, so that the economic impact will be tangible in-country. All too often, pension fund allocations to alternative investments go offshore, such as in South Africa, by asset managers,” he added.
Effectively this approach by Mergence redirects funds back to Lesotho, ensuring that Basotho people are investing directly into the infrastructure of their own country.
Mergence believes this model will also assist in attracting foreign investors, including development finance institutions to co-invest alongside some of the largest domestic pension funds.