Despite ongoing controversies surrounding South Africa’s Black Economic Empowerment (BEE) policies, 36ONE, a white-owned asset management company has finalised a transaction that will see a consortium acquire a 22% stake in the firm.
The deal is being led by MI Capital, the investment arm of the Maharishi Invincibility Institute (MII), and reflects a growing trend of integrating financial markets with social development initiatives in South Africa.
36ONE’s Growth and Strategic Vision
Founded in 2004 by Cy Jacobs and Steven Liptz, 36ONE has grown into one of the country’s foremost asset managers, overseeing assets exceeding R60 billion.
The latest BEE partnership positions the firm not only as a major player in investment management but also as a catalyst for social transformation, as it seeks to promote diversity and inclusiveness across governance, staff, and stakeholders.
MII’s Educational Impact
MII, a Johannesburg-based free-access educational centre, has supported over 25,000 South Africans in securing meaningful employment, contributing an estimated R80 billion to the national economy.
Its investment arm, MI Capital, manages a bursary fund designed to provide long-term access to world-class education, career opportunities, and entrepreneurial pathways for more than 100,000 young people.
Embedding Empowerment into Governance
Under the BEE deal, the consortium, which includes 36ONE staff and youth communities affiliated with MII through The Invincible Empowerment Trust, now holds a 22% stake in the firm.
The structure, according to the group is designed to embed empowerment directly into the company’s governance and strategic planning, reinforcing long-term social impact.
“This partnership is more than a financial transaction,” Jacobs said. “It reflects our belief that investing in human potential is as important as financial growth. By working with MII, we are helping to shape the next generation of leaders, entrepreneurs, and professionals in South Africa.”
Empowering the Next Generation
Dr Taddy Blecher, CEO and co-founder of MII, said: “36ONE’s support allows us to expand our educational programmes, provide more jobs, and foster entrepreneurship. This partnership creates tangible empowerment opportunities for youth who have historically been disadvantaged.”
Controversy Surrounding BEE
The deal occurs amid ongoing debate over BEE policies in South Africa. Critics, including billionaire Elon Musk, have publicly labelled the laws “racist” and argued that they could deter foreign investment. Musk has called BEE a “disgrace” to Nelson Mandela’s legacy, highlighting tensions between promoting economic transformation and maintaining a competitive business environment.
Political voices have also voiced sharp criticism. The Democratic Alliance (DA), as the official opposition, argues that BEE has deterred investment, stifled growth, and benefited a select few, advocating instead for an alternative empowerment model focused on creating jobs and lifting people out of poverty.
Similarly, Herman Mashaba, leader of ActionSA and former chair of the Free Market Foundation, is a vocal critic of BEE, particularly how it has favoured a narrow circle of well-connected individuals.
Political analyst Moeletsi Mbeki has described BEE as a “virus,” claiming it was created by big business to co-opt leaders and protect vested interests rather than achieve broad social upliftment.
Supporters of the policy however contend that BEE remains a crucial tool to address historical inequalities and ensure inclusive economic participation.
