Futuregrowth is set to launch a venture capital fund and enhance its offshore capabilities under the leadership of new CEO Vuyo Nogantshi. Transitioning from Absa Capital in July, Nogantshi shared with Citywire South Africa that the firm is preparing to roll out a venture capital fund focused on early-stage financial technology projects.
The target is to grow this fund to R1 billion as quickly as possible, expanding Futuregrowth’s alternative offerings beyond its current community property and infrastructure investments. “We are about to launch a venture capital fund,” Nogantshi stated. “It will focus on early-stage fintech and is aimed at supporting investments that can contribute to economic growth.”
In addition to entering the venture capital space, Futuregrowth is looking to establish a track record in global portfolios. Nogantshi noted that this move aligns with changes in Regulation 28 of the Pension Funds Act, which increased the offshore investment allowance to 45% in 2022. He emphasized that clients now expect domestic asset managers to provide hard-currency products that can compete with global offerings.
“You can’t stand still,” Nogantshi remarked, emphasizing the need for growth both domestically and internationally. He explained that Futuregrowth’s expansion will not compromise its traditional focus on South African fixed income and developmental investments but will instead reflect a response to growing investor demands.
The dual strategy aims to balance high-risk local investments with diversification opportunities abroad. The venture capital fund is intended to capture local innovation, particularly in fintech, while the global portfolio initiative will allow Futuregrowth to meet regulatory demands and pension fund expectations for broader currency and asset diversification.
Nogantshi underscored that this approach aligns with Futuregrowth’s philosophy of linking investment returns to developmental outcomes. “If we can help early-stage companies secure funding while providing our clients with competitive exposure, then we are fulfilling our mission,” he said.
Futuregrowth manages a variety of fixed income and alternative strategies, and these new initiatives are vital for maintaining relevance in a competitive market. “In the asset management industry, flows can be unpredictable,” he noted. “While we’ve experienced compound growth, we need to ensure we have products that meet client demands.”
Acknowledging the challenges of launching new strategies in the current environment, Nogantshi stated, “It’s not easy to start new products; you must demonstrate capability in delivering results and managing risks. However, we believe the opportunity is there, and that’s why we’re moving forward.”