Why Hybrid Capital is transforming and unlocking inclusive growth 14 August 2025

As one of Old Mutual Alternative Investments’ Independent Business Units (IBUs), Hybrid Capital sources, structures, invests, manages and exits transactions across multiple sectors and capital structures. Over the course of 2023 and 2024, our Hybrid Capital division deepened its impact by making strategic investments that delivered economic returns while also making measurable improvements in transformation, women’s empowerment, and inclusive ownership.  

Unlike traditional private equity, Hybrid Capital focuses on minority investments with a transformation lens, or direct lending into operating businesses. It works alongside business owners and management teams to structure deals that enable meaningful economic and B-BBEE outcomes. By focusing on shareholder restructuring and long-term value creation, the division helps businesses transition to inclusive models of ownership while unlocking capital for growth.  

Our Co-Head of Hybrid Capital, Mujaahid Hassan, explains that the power of the IBU’s platform lies in its ability to access different products: “As Old Mutual Alternative Investments we are probably the only player in the market that offers everything, from your typical senior vanilla and mezzanine debt, hybrid capital, as well as traditional private and infrastructure equity - we can offer a full solution to underlying transactions and investors.”

Over the period in review, several transactions stand out:  

Imperial Logistics

In one of the highest-impact deals, our Hybrid Capital division partnered with Imperial Logistics SA (ILSA) to support a large-scale empowerment transaction that fundamentally shifted its ownership profile. Through a R112 million preference share acquisition, Old Mutual Alternative Investments enabled an increase to 25% black female ownership and supported the elevation of one of the female partners into that 25%. The woman in question, Phumzile Langeni, subsequently took up the reins as ILSA chairperson.  

Commenting on the broader impact of this achievement, Hassan said: “When we support black partners in transactions, they also drive transformation in the underlying businesses, and that is critical, so the capital we deploy impacts right down to the bottom of the operating company.”

  • Black transformation  
  • Representation at board level  
  • Gender equality  
  • Critical sector (logistics) 
Kutana

Through its partnership with Old Mutual Alternative Investments and Hybrid Capital, one of South Africa’s leading black women-owned investment companies, Kutana, was able to expand its portfolio with a 35% stake in a food processing business. This partnership has enabled the next generation of women industrialists to participate in value-creating sectors of the economy where they have historically been underrepresented. 

  • Black transformation  
  • Transformation at board level  
  • Gender equality  
  • Critical sector (food) 
Octotel 

Hybrid Capital made an investment in Octotel, the Western Cape’s leading open-access fibre provider. The business is at the forefront of bridging the digital divide in underserved 

urban areas and townships, and the deal enabled further expansion of fibre infrastructure in regions previously excluded from high-speed internet. 

Hybrid Capital was responsible for bringing a B-BBEE partner into the business, which increased Octotel’s black ownership to more than 51% and introduced diverse leadership into its board. The investment enabled Octotel to create jobs in network 

installation and customer support. Many of these positions were filled by young people and women from marginalised communities. In addition, connectivity was brought to areas that previously had not been served. 

  • Majority black-owned business  
  • Transformation at board level  
  • Required ICASA* shareholding structure  
  • Impactful job creation in underlying companies 
In2food

in2food, one of South Africa’s largest food manufacturing and agri-processing companies, underwent a crucial transformation in 2024, thanks to a partnership with the Hybrid Capital team. The R456 million in senior and mezzanine finance facilitated the exit of a legacy international shareholder and the introduction of a women-owned empowerment consortium as a long-term partner. The restructuring took black ownership to 55%, including more than 30% black women ownership - a landmark achievement in the agri-processing sector, which has historically been resistant to transformation. 

  • Majority black-owned business  
  • Gender equality  
  • Critical sector (food) 
Pride Milling

In a sector marred by historically low levels of black ownership and underrepresentation, our transformative investment in Pride Milling is particularly noteworthy. Hybrid Capital brought a controlling black ownership stake into Pride Milling - a leader in South Africa’s maize milling and agri-processing sector - by adopting a strategic approach to including black women in the shareholding and executive management structure. 

The result was a game-changing and transformative black ownership first for the milling sector in South Africa. With a controlling stake in the business, the new owners are now in a position to keep driving transformation throughout the vitally important sector and bring onboard more small-scale black farmers to really affect change across the value chain. 

  • Majority black-owned business  
  • Gender equality  
  • Critical sector (food)