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South African financial services group Sanlam has signed a binding framework agreement with asset management company Ninety One, aiming to form a long-term relationship.
The agreement will make Ninety One the primary active investment manager for Sanlam's single-managed local and global products. It will also facilitate the execution of various operative agreements to formalise the 15-year relationship.
This partnership involves Ninety One acquiring all issued shares in Sanlam Investment Management, and Sanlam, in return, receiving an approximate 12.3% equity stake in Ninety One.
Sanlam will also appoint Ninety One as the permanent investment manager for assets managed by Sanlam Investments UK, a subsidiary of the Sanlam Group.
The partnership will see Sanlam become an anchor investor in Ninety One's international private and specialist credit strategies.
Ninety One, with its origins in South Africa and a global presence, will gain preferred access to Sanlam's distribution network. This move is expected to expand Ninety One's market reach and accelerate the expansion of its international private credit offerings.
Ninety One founder and CEO Hendrik du Toit said: “We are looking forward to a long and fruitful relationship with Sanlam, a business with a powerful brand and significant scale in South Africa.
“Our experience and expertise are complementary. This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders.”
The collaboration with Ninety One is intended to enhance Sanlam's active asset management capability and deliver improved outcomes for clients.
The transaction consideration will be settled by issuing Ninety One shares, resulting in Sanlam Group holding an effective 9.2% share in Ninety One.
Financially, the in-scope assets under management from Sanlam Investment Management and Sanlam Investments UK amount to approximately R400bn (approximately £17bn or $21.5bn) as of 30 September 2024.
Sanlam Group CEO Paul Hanratty said: “Sanlam is pleased to partner with a like-minded business with a shared South African heritage, proven global expertise and a reputable brand.
“By leveraging our complementary competencies, Sanlam Investments will be strengthening its South African and global position as a multi-skilled asset manager.”
"Sanlam enters asset management deal with Ninety One" was originally created and published by Private Banker International, a GlobalData owned brand.
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