Fifteen years ago, one of SA’s top investment analysts, Steven Nathan, gave up Deutsche Bank’s big bucks to create highly disruptive 10X Investments. His low cost alternative to fee-raking retirement funds has been a huge success. Nathan is the real deal – an authentic entrepreneur who lives a conviction that putting clients first is the only way to grow a sustainable business.
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This week Nathan left his creation “with immediate effect”. Old Mutual-appointed chairman Henk Beets hastily moved into the CEO’s office with the company spinning the exit as friendly. The official line reads: “Steven was presented with an opportunity to sell his shares…..he decided the timing was right. It was an amicable parting of the ways.”
That’s absolute rot. Steven Nathan is one of the most rational beings you’ll meet. It’s absurd to claim he would absorb the pain of building a startup only to cash in when it’s breaking through. The real 10X story is all too familiar: a far-sighted entrepreneur brings in private equity partners to fund the growth. They claim to be for the long haul. But their eyes are actually on grabbing a quick return.
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Also read:Â Alec Hogg: Next move after Aus Govt blocks WBHO deal
Nathan must rue taking cash from Old Mutual (2014) and UK-based DiGame (2017). Like many entrepreneurs before him, he discovered private equity comes with plenty of strings attached. 10X’s founder is also an outspoken critic of SA’s financial services status quo. That would not have helped the 10X boardroom mood. But he’ll be back. Stronger and wiser for the experience. Count on it.
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