Coronation Fund Managers has proudly won the BEE Deal of the Year award at the prestigious annual DealMakers Awards. This accolade underscores Coronation’s commitment to broad-based black economic empowerment (B-BBEE) as a natural progression in its 30-year plus transformation journey, and Nedbank Corporate Investment Banking’s (CIB) dedication to finding innovative solutions that drive sustainable development and foster economic growth in South Africa through transformative BBBEE initiatives. Nedbank CIB acted as Coronation’s corporate adviser and transaction sponsor in this transaction.

Coronation triumphs in award-winning deal

The DealMakers Awards celebrates excellence in mergers and acquisitions, corporate finance, and private equity. Coronation’s recognition in the BEE Deal of the Year category highlights its pivotal role in advancing B-BBEE and contributing to South Africa’s broader socio-economic development, as well as Nedbank CIB’s role in advising on such transactions.

Coronation Fund Managers: A case study in BEE transformation

Coronation Fund Managers  has maintained a B-BBEE level 1 contributor status since 2021, with 31% verified effective black ownership and R278 billion (42% of total assets under management) managed by black employees at the end of their 2024 financial year. Its South African-based employees are 64% black, of whom 57% are black women.

As a natural progression in its transformational journey, Coronation embarked on a black ownership transaction to increase its effective black ownership to at least 51%.

This broad-based transaction contributes meaningfully to the objectives of B-BBEE while simultaneously enhancing Coronation’s competitiveness and sustainability in the asset management sector. Key benefits of this transaction include the following:

• Long-term growth: The transaction provides Coronation with a robust platform to defend and expand its client base and revenue streams, while also providing potential upside through access to opportunities that would otherwise not be available, and reinforcing its position in the asset management sector.
• Attracting talent: By aligning the interests of black employees with those of shareholders, Coronation can attract and retain top talent, fostering a diverse and inclusive workplace that reflects its commitment to corporate social responsibility.
• Mutual benefits: Enhancing Coronation’s competitiveness and sustainability while also benefiting and uplifting a broad base of beneficiaries and contributing meaningfully to the objectives of B-BBEE.

Understand the importance of black economic empowerment in South Africa

B-BBEE is crucial for the sustainable development of the South African economy. It aims to redress historical inequalities by promoting the participation of black South Africans in the economy. This is essential for economic development and ensuring that all citizens share in the benefits of this growth.

B-BBEE transactions can promote community development, create job opportunities, and stimulate economic growth. By virtue of the roles that they playin achieving black ownership, companies like Coronation and Nedbank contribute to building an inclusive economy that benefits all South Africans.

Nedbank’s role in facilitating transformative deals

Nedbank CIB worked closely with Coronation and its other advisers to provide strategic corporate advice and transaction sponsor services to meet a range of client, BBBEE, financial and regulatory objectives and requirements. For Nedbank CIB, the transaction underscored its expertise in delivering bespoke solutions to achieve high-impact outcomes. Through its partnerships across critical sectors such as financial services, energy, infrastructure, and mining, Nedbank CIB continues to drive innovation and create value in the markets it serves.

Explore the prospects of BEE in South Africa

The future of B-BBEE in South Africa looks promising, with increasing recognition of its importance for economic development and social equity. Companies that embrace BBBEE will likely see enhanced competitiveness and sustainability which contribute to the overall growth of the South African economy.

B-BBEE drives inclusive growth by promoting the participation of black South Africans in the economy. It helps to create a more inclusive society where everyone can succeed. BEE initiatives foster inclusivity and diversity, and contribute to historically disadvantaged communities’ social and economic upliftment.

The role of financial institutions in economic empowerment

Financial institutions like Nedbank CIB play a crucial role in economic empowerment. By advising on BBBEE transactions, they help to create opportunities for black business growth and financial empowerment. These efforts are essential for building a more inclusive and equitable economy.

Nedbank CIB continues to lead by example, demonstrating that sustainable development and business success go hand-in-hand. Congratulations to Coronation for their outstanding contribution to transformation and economic empowerment in South Africa.

By advising on transformative transactions such as this one, Nedbank CIB is driving economic growth and contributing to the broader goal of social equity and community development. This award celebrates Coronation’s achievement and underscores the role of BBBEE in building a more economically inclusive society for all South Africans.