Conduit Capital, a South African investment holding company, has acquired the entire issued share capital in Snowball Wealth and Midbrook Lane.

Snowball Wealth is a Cape Town based investment company started by Leo Chou, Julian Rabinowitz and Lyndon Saayman.

The firm invests the vast majority of its funds in companies listed on the JSE.

Midbrook Lane is a private company incorporated in South Africa, which invests in well managed businesses with understandable and difficult to replicate business models.

The company tends to make direct equity investments, as a significant or majority shareholder, in businesses incorporated in South Africa, with operations either in South Africa or on the African continent.

The net asset value (NAV) of Snowball Wealth was determined to be R464.61m, whereas the NAV of Midbrook Lane was R167.65m.

The acquisitions were concluded through the issuance of Conduit Capital shares at 245c each, which lifted the NAV of the group to R214.6m compared with R184.9m before the transaction.

The deal will result in a larger investment portfolio, enhanced earnings and a bigger balance sheet for Conduit.