Download Tag: Mauritius

GCR Risk Score Snapshot Q4 2025

The purpose of this publication is to aid regional and sectoral comparability, alongside providing a platform for understanding GCR Ratings. The table and charts below…

Forty Two Point Two Limited (Jul 2024)

Forty Two Point Two Limited (FTPT, Forty Two Point Two) is an investment holding company, domiciled in Mauritius. It was established as an investment vehicle through which key employees and senior management of Ninety One Limited and Ninety One Plc (collectively referred to as Ninety One) built a long-term investment in the founder-led global investment manager. Forty Two Point Two only invests in the dual-listed shares of Ninety One, holding a c.27.8% shareholding in the company as at 31 March 2024.
Ninety One was founded in South Africa over 30 years ago and has been organically and sustainably grown into a global player with approximately GBP126.0 billion in assets under management (AUM) at 31 March 2024 – the AUM decreased from GBP129.3 billion and GBP143.9 billion at 31 March 2023 and 31 March 2022. It has a market leading position in its Southern African operations, while also reflecting material geographic diversification in developed regions such as UK, Europe, and North America. The client grouping is well spread across pension funds, public authorities, official institutions, insurance companies, private banks, wealth managers and corporates having been built up on the back of a long-standing track record and good market acceptance/branding within the core markets. The GCR calculated Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margins have been good, with strong earnings in 2023 and 2024. Nevertheless, AUM growth has moderated and may continue to do so in the next 12-18 months due to highly uncertain macro conditions globally and rising interest rates that is fostering risk aversion across the investor base. However, we expect EBITDA margins to remain above 28% over the outlook horizon. Balance sheet risk is very low given the capital light nature of the business and absence of debt, while revenue sources are stable, comprising mainly management fees. Liquidity is good, with sound cash flow generative capacity supporting good medium-term sources vs. uses coverage of between 1.00x to 1.25x, albeit upside is limited due to the high dividend pay-out policy. While this moderates the liquidity score for Ninety One, it supports income stability for Forty Two Point Two.

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Multilateral Development Banks’ callable capital integration into capital adequacy frameworks (Jun 2024)

Callable capital is a crucial component in the Capital Adequacy Frameworks (CAFs) of Multilateral Development Banks (MDBs). It acts as a financial safety net, enhancing creditworthiness and providing leverage capacity. Callable capital refers to the portion of a MDB’s subscribed capital that can be called upon from member countries if required to meet financial obligations. It is not paid in but serves as a commitment to back the MDB’s borrowing and lending activities in the event that additional capital is required.
Despite its importance, callable capital faces challenges in terms of availability, operational flexibility, and prompt execution due to the complex and time-consuming processes involved in capital calls. Recent reviews and reports by major MDBs highlighted the following challenges:

• Delayed Access: Callable capital is not immediately available, requiring formal calls and potentially facing delays
• Credit Perception: Calling capital might be perceived as a sign of distress
• Operational Constraints: Limited utility in day-to-day operations due to conditional nature

While callable capital is valuable, maintaining substantial paid-in capital and financial guarantees remains essential for MDBs to ensure robust and flexible financial operations. The focus on enhancing callable capital policies is ongoing, aiming to maximise investment capacities and ensure long-term sustainability.

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