Coming off its recently oversubscribed US$30.3-million ($4.4 billion) capital raise, PROVEN Investments Limited has entered into an agreement with Knowledge First Foundation to purchase its 100 per cent interest in Heritage Education Funds International Inc.

In what has been a busy first quarter of mergers and acquisitions, with last week alone seeing two other listed companies making acquisitions, PROVEN has changed the game as it enters its third acquisition since the start of new year. The other two acquisitions involved a 50.5 per cent interest in Barbados-based Roberts Manufacturing, and 100 per cent purchase of Fidelity Bank (Cayman) Limited. The Fidelity acquisition is subject to regulatory approval along with all conditions up to June 30 or an extended longstop date as defined in the share purchase agreement.

“We at PROVEN see this acquisition as complementary to our current financial services offerings, and an opportunity to widen our presence in the wealth management space throughout the Caribbean. The Heritage Plan is very similar to the product offerings of our other wealth management subsidiaries, with operations in Jamaica, Cayman, Bermuda and BVI [British Virgin Islands], and we look forward to welcoming the Heritage clients to the fold and offering them the same first-class service that is synonymous with the PROVEN brand,” said Johann Heaven, Head of Banking and Wealth at PROVEN.

Heritage specialises in administering and managing education savings plans (ESPs) for clients in The Bahamas, Bermuda, Jamaica, and the British Virgin Islands and has enrolled over 50,000 children in its plan since its inception in 1983, and oversees approximately US$150 million in assets under management (AUM). Heritage has been operating in Jamaica since 1995, with the fund paying over US$36.8 million for more than 15,000 students’ tertiary education.

“We strongly believe that this transaction will help Heritage International Scholarship Trust Plans thrive and grow within the Caribbean region, with a local and experienced wealth management leader at the helm, while allowing for focus and pace on advancing our Canadian strategies at home,” said Carrie Russell, president and CEO, Knowledge First Foundation and Knowledge First Financial Inc.

The announcement has been met with praise on social media as several parents look forward to PROVEN’s synergies to further enhance Heritage’s AUM earning capacity. Its Fidelity acquisition is expected to catapult the 11-year-old St Lucian company’s (PROVEN) asset base past US$1 billion ($150 billion) which is a far cry from its initial US$20 million ($1.71 billion) raised in its February 2010 private placement. PROVEN was co-founded by Christopher “Chris” Williams, Peter Bunting, Gary Sinclair and Mark Golding.

PROVEN is expected to have a gain on acquisition of US$4.5 million ($660.3 million) based on Robert’s identifiable net assets of TT$176.2 million (US$26 million). These deals should close in the second quarter as PROVEN accelerates its balance sheet growth.

“We are very excited with this recent acquisition! This is not only consistent with our strategic focus but supports our outlook of the impending buoyancy of the Caribbean economies on the other side of the coronavirus pandemic. Our focus is to emerge stronger with an aim to take advantage of opportunities that will posit value for all stakeholders,” stated Heaven.