Aurora Capital SA innovates and diversifies offerings for private capital

Aurora Capital SA innovates and diversifies offerings for private capital

Gerhard Labuschagne, Chief Investment Officer, Aurora Capital SA

Aurora Capital SA has made a name for itself as a forward-thinking player in South Africa’s investment landscape. With a focus on blending traditional asset classes with innovative private capital solutions, the company is reshaping the way investors approach risk and return.

The firm’s standout performance in 2024 was its unit trust which achieved a 12-month performance of 13.1% by the end of October, with a maximum monthly drawdown of just 0.2%. Similarly, the Reg28 Fund and the Aurora Worldwide Flexible Fund surpassed expectations, reflecting the effectiveness of Aurora’s innovative investment strategies.

Aurora Capital SA has faced resistance from service providers who have traditional investment mindsets. These stem from Aurora’s focus on private debt assets—a less conventional investment vehicle in South Africa. However, the company’s refusal to accept the status quo has driven it to innovate.

Innovation lies at the heart of Aurora Capital SA’s philosophy. Confronted with outdated systems and platforms, the company consistently overcomes challenges to bring real economy investments to real investors. This focus on innovation extends to 2025, with plans to introduce its offerings to a broader audience of retail and institutional investors.

As an approved Financial Services Provider, Aurora Capital SA combines financial expertise with a customer-centric approach. The company’s products are designed to provide investors with peace of mind through predictable outcomes and robust risk management.

With a proven track record and a commitment to innovation, Aurora Capital SA is poised to remain a trusted partner for South African investors seeking to navigate an increasingly complex financial landscape.

“We specialise in incorporating private debt assets into traditional investment products,” says Gerhard Labuschagne, Chief Investment Officer at Aurora Capital SA.

“Notable achievements in this regard include listing private debt on the Cape Town Stock Exchange and preparing for the launch of an Actively Managed Certificate, AMC, aimed at expanding the accessibility of their unique offerings.”

One of Aurora Capital SA’s key missions is to democratise access to alternative assets. Historically reserved for institutional investors, these assets are now being packaged into products accessible to retail clients. The firm’s extensive experience in the investment industry—more than 60 combined years—has allowed it to design solutions that cater to this underserved market.

“Private capital has a bright future in South Africa. We believe that this asset class complements traditional investments, with portfolios in the next decade allocating at least 20% to private capital. We are committed to this transformation by educating stakeholders, creating adaptable investment vehicles, and delivering reliable returns,” adds Labuschagne.

In response to evolving investor needs, the firm has diversified its portfolio by introducing new companies into its investment mix. This approach has not only reduced risk but also enhanced yield. The strategy of targeting undervalued local bonds and focusing on sectors like agriculture and purchase order funding has been instrumental in Aurora Capital SA’s success.

Looking ahead to 2025, Aurora Capital SA acknowledges the geopolitical shifts likely to reshape financial markets.

“We are entering uncharted territory with a second Trump presidency,” says Labuschagne. “Regardless of whether it will be good or bad, there are likely to be major changes in trade and global relations. To navigate this uncertainty, we will continue to prioritise low-volatility, high-predictability assets, ensuring consistent returns for our clients.”

Aurora Capital SA’s flexibility in identifying investment opportunities is matched by its rigorous risk management processes. These dual priorities ensure that the company’s products remain competitive despite how rapidly the market is evolving. By combining innovative thinking with disciplined execution, Aurora has set a benchmark for excellence in investment management.

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