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Trustco secures US$100 million capital injection from shareholder Riskowitz Value Fund

Trustco secures US$100 million capital injection from shareholder Riskowitz Value Fund

By Michel Haoses.

Trustco Group Holdings Limited announced that Riskowitz Value Fund (RVF) has agreed to invest US$100 million in hybrid capital into Trustco on a six-month non-exclusive basis.

American-based Riskowitz Value Fund LP is a hedge fund operated by Protea Asset Management LLC, known for its strategic focus on compounding partners’ capital at a high rate over the long term while minimising the risk of permanent capital loss.

Trustco in a statement on Wednesday said the agreement stipulates that RVF can invest up to US$100 million for its account with no commission or fee being paid by either party and the transactions allow Trustco and RVF to capitalise on the low market valuation of Trustco, to create long-term value for all Trustco shareholders.

Trustco’s deputy Chief Executive, Quinton van Rooyen junior stated that listed equities on the JSE nearly shed R2.3 trillion in market capitalisation in 2023 resulting in the company seeking opportunities to access new sources of capital.

“RVF is a 23% shareholder in Trustco and has been an equity holder in Trustco for more than 10 years. Their confidence in our diverse portfolio of investment, strong management team, and growth prospects make than an ideal collaborator,” he said.

Van Rooyen further expressed confidence that the investment expertise and knowledge from North America will be invaluable to setting the stage for Trustco’s next chapter of growth.

Investors can expect Truscto to make the necessary public disclosures regarding progress in due course through the relevant stock exchange services, Van Rooyen concluded.

RVF in the interim seeks to identify and invest in a select portfolio of listed companies primarily in emerging markets to leverage the region’s dynamic business environment and opportunities.


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