David Hurwitz to end 18-year tenure at Transaction Capital

After 18 years at the helm of Transaction Capital, David Hurwitz has announced his decision to step down as CEO. Hurwitz, who has been with the company for nearly two decades and led as CEO for over nine years, made the announcement following a challenging period for the company, particularly in its SA Taxi division. The recent poor performance of SA Taxi has weighed heavily on Transaction Capital's share price, prompting a strategic shift towards unlocking value from the company's existing portfolio. In a recent interview with CNBC Africa, Hurwitz discussed the factors behind his decision to step down and the future of Transaction Capital under new leadership. Hurwitz highlighted the impact of various external events on SA Taxi's operations, including the COVID-19 pandemic, high fuel prices, interest rate hikes, and disruptions to minibus taxi production. These challenges, combined with internal factors, necessitated a significant restructuring of the business model. Despite the difficulties faced by SA Taxi, Hurwitz expressed confidence in Transaction Capital's overall resilience, citing the strength of its other key businesses, Lebar Cars and Newton. One of the key themes of the interview was the importance of creating shareholder value, a principle that has guided much of Hurwitz's tenure at Transaction Capital. As the company looks to navigate a changing industry landscape, Hurwitz emphasized the need to focus on delivering value for stakeholders and leveraging the expertise of the company's founders. As Hurwitz prepares to transition out of his role, he outlined his plans to support a smooth handover to incoming CEO Johnny Giorno. Hurwitz will remain with the company until the end of the financial year in September, with a contract extension likely until December 2024. During this time, he will work closely with Giorno and the board to ensure a successful transition and continued stability for Transaction Capital. In response to concerns about the company's future, Hurwitz reassured stakeholders that Transaction Capital is well-positioned to weather the current challenges. While SA Taxi may face ongoing pressures, the company's strong performance in other business segments provides a solid foundation for long-term growth and sustainability. Hurwitz's departure marks the end of an era for Transaction Capital, but also signals a new chapter as the company looks ahead to a fresh leadership under Giorno's guidance. Overall, Hurwitz's decision to step down reflects a strategic realignment within Transaction Capital and a commitment to driving value for shareholders in a dynamic and evolving market landscape.