IMD-1-0220 © 2005
Leleux, Benoit F.; Ogunsulire, Mope; El-Agamy, Hischam
WIPHOLD raised its money from disenfranchised black women in the townships to invest in mainstream economic activities. From boutique investment fund, it rapidly established itself as one of one of the movers and shakers and the key drivers of economic authorization in the South African financial services community.
The A-instance relates how, between 1994 and 1997, the founders, successful black business women and four dynamic, took their bold vision of black economic empowerment to grassroots women in South Africa. The "WIP Four" raised cash, struck their first deals, gained the girls's buyin, selected an all-girls (but mixed race) board and structured the girls-only IPO. However, the target was challenging, to raise R40 million from numerous women who were merely being introduced to the notion of investment, giving as little as R600 each (for 200 shares) for their position. Would they succeed? This case series was the 2005 EFMD award winner in the class “Managerial Dilemmas in Transitory Markets”.
Wiphold A Beyond Labor And Consumption Case Solution
Subjects: Entrepreneurship; Private equity; South Africa; Economic empowerment; Black economic empowerment; BEE; Postapartheid; Social entrepreneurship; Development finance; Special purpose vehicles
Settings: South Africa; Financial services; US$165 million; 1994-1997
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