LETTER: Memo wrong to combine Mergence’s PIC fees
We believe that numbers for both our subsidiaries have been erroneously amalgamated
With reference to the article by Magda Wierzycka (Unknown entities thrive on incredible PIC largesse, February 5), Mergence Group has engaged with the Public Investment Corporation (PIC) in the past few weeks to have figures corrected that are erroneously stated in the “confidential” memo to which Wierzycka refers.
The Mergence Group has two subsidiaries that conduct business with the PIC: Mergence Africa Capital and Mergence Investment Managers. Mergence Africa Capital is a derivative broking, structuring and advisory business. This subsidiary earned R36m in derivative broking and advisory fees from the PIC from 2014 to 2018 — not R110m as stated. We believe that the figures, which span a number of years, for both our companies Mergence Africa Capital and Mergence Investment Managers have been erroneously combined. If that is the case then the total fees, including asset management fees, for all service providers (including asset/investment managers) of the PIC, should also b...
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