Ninety One has acquired Sanlam Investment Management in a new framework agreement and will become the primary manager for all its products.
As part of the deal, Sanlam’s £17bn of assets under management will fall under the control of Ninety One when the transaction is finalised in March next year.
It will also take over management of Sanlam Investments UK, though this branch of the business will remain under the ownership of Sanlam Group.
In turn, Sanlam will take a 12.3% stake in Ninety One’s shares.
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Both firms were founded in South Africa, and it is hoped this new deal will allow the companies to solidify their position in the region.
Ninety one said the deal would “expand its market reach” into “savings pools outside the normal reach of the Ninety One,” while also allowing it to “accelerate the expansion of its international private credit offerings”.
Hendrik du Toit, founder and CEO of the firm, said: “This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders. We are making a substantial investment in the future of South Africa.”
