JOHANNESBURG (Reuters) - Investec Asset Management, a subsidiary of Investec, has bought in a firm that runs private colleges in South Africa, it said on Thursday, tapping into a fast-paced expansion in education businesses.
Rising incomes among the continent’s vast population have created a pool of customers willing to pay for better schooling for their children. That in turn is driving a fast-paced expansion in education businesses.
Investec Asset Management said it had bought shares in Richfield Holdings, but did not disclose the size of the stake or cost of the deal.
Richfield founder and Chief Executive Officer, Jay Ramnundlall said the tie-up with Investec Asset Management would enable the firm to expand further. Founded 28 years ago, Richfield has more than 40 campuses in South Africa.
Investec Asset Management has $143 billion in assets.
Its parent company is planning to spin-off and float the asset management unit on the London Stock Exchange with a secondary listing in Johannesburg.
Curro Holdings is South Africa’s largest private education group, with schools across the country and Namibia. It is followed by Advtech, which has been expanding in Africa, where rising incomes have created a pool of customers willing to pay for private education.
Reporting by Nqobile Dludla; Editing by James Macharia