PIC calling in experts to stabilise its underperforming unlisted portfolio

The Public Investment Corporation (PIC) is reported to have put out a tender to set up an expert panel to advise it on a portfolio of unlisted companies which are underperforming.

The state-owned entity manages the bulk of investments for the Government Employees Pension Fund (GEPF).

Its assets under management grew to over R3 trillion in 2025, from R2.3 trillion in 2021, representing 30% growth.

However, unlisted investments saw little growth, with some decisions leading to intense scrutiny and public scandal, notably the Daybreak Farms saga.

These unlisted companies make up just 4.5% of the R3 trillion, but seem to create the biggest headaches for the Corporation says Khaya Sithole, analyst and chartered accountant

"This is particularly when you look at the quality of the investments they've undertaken and the type of impairment that they tend to have to record in relation to them."

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Sithole points out the inherent problem with the unlisted entities, which is that their performance is not as accessible to the public as the listed investments, and also that they reflect the dual mandate of the PIC.

"With the unlisted investment space it must be acknowledged that the PIC has been very clear that it doesn't simply seek absolute economic returns... it also wants some element of social or developmental returns."

But, as in the Daybreak case, they were far too late managing the red flags company operations raised, Sithole says.

"It looks like the model they've used over a very long time to try and identify the best investment opportunities and hope for the best hasn't really worked out, so the idea of getting additional expertise might indeed help them to do better quality decision-making in the long run."

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