A significant restructuring has occurred within Novare Holdings, a diversified financial services entity, following the successful exit of its major institutional investor, Ata Capital Fund II. The private equity firm has divested its entire 26 per cent shareholding to the Novare management team, a transaction that heralds a critical moment in the company’s trajectory towards full owner-management. While the financial details of the sale remain confidential, the completion of this management buyout (MBO) is conditional upon receiving the requisite authorisations from regulatory authorities, a standard procedure given Novare’s operation across multiple licensed entities in the financial sector.
This strategic divestment aligns with Ata Capital’s investment philosophy, which prioritises empowering capable operational teams and fostering long-term, sustainable value creation across its portfolio. Lelo Rantloane, Chief Executive Officer of Ata Capital, expressed gratitude for the firm’s involvement in Novare’s development, explaining that the time was opportune for the management to assume complete ownership. Rantloane asserted that services businesses typically flourish best under owner-management, citing the Novare team’s proven resilience in navigating challenging economic climates, rationalising operations, and establishing a robust platform ready for subsequent growth. According to the African Private Equity and Venture Capital Association (AVCA), management buyouts have become an increasingly popular exit strategy in recent years, particularly in the financial services and infrastructure sectors across the continent, allowing private equity funds to realise returns while ensuring local operational continuity.
Since Ata Capital’s initial investment, Novare has undergone substantial transformation and strategic expansion. The company’s focus on empowerment was evidenced by its achievement of Level 1 Broad-Based Black Economic Empowerment (BEE) status in 2019, following a management-led repurchase of a co-founder’s stake. The Financial Mailhas frequently highlighted the Level 1 status as being highly advantageous within the competitive South African financial landscape, where empowerment credentials are a key factor in securing institutional mandates and public sector contracts.
Beyond local transformation, Novare has achieved notable regional and sustainability milestones. It expanded its regional footprint by opening Novare Central Lusaka, an office facility in Zambia that became the nation’s first building to receive an Excellence in Design for Greater Efficiencies (EDGE) certification. This commitment to green investment was further solidified in 2024 when the company became the first African entity to collaborate with the International Finance Corporation’s Greening Real Estate Investment Portfolio (GRIP) programme. The commitment to sustainable investment and environmental standards is increasingly critical, as detailed in a recent IFC Official Report on Sustainable Investments, which links EDGE certification to reduced operational costs and improved asset valuation. Furthermore, Novare has garnered significant industry recognition, including multiple wins for its fund performance and asset consulting capabilities at the HedgeNews Africa Awards and the ABSIP Awards in 2021 and 2024, respectively.
Ola Leepile, Chief Executive Officer of Novare Holdings, described the transition as an exciting new phase for the organisation. He acknowledged the value of the collaboration with Ata Capital in strengthening the business and enabling the development of a more sustainable and transformed financial services platform. Leepile further stated that the acquisition of the former investor’s stake significantly enhances management’s control over the business operations, enabling the team to focus fully on charting a new and durable course for Novare and its clientele. Ata Capital concluded by affirming that the exit strongly reflects its mandate to back empowerment-led transactions that drive inclusive and responsible investment across African markets.