Four Capital Partners has said its proposed merger with Sanlam International Investments will allow it to better target retail and institutional markets as well as attract top manager talent.
Sanlam has been a major backer of Four since 2009, having appointed Four to run a mandate for it before later signing a shareholder agreement.
Now though, the groups have become more intertwined with Four and Sanlam International Investments merging to become Sanlam Four Investments, which will target retail and institutional clients.
The Sanlam Group will have an 89.7 per cent stake in the combined business but the investment teams at Four will retain a 30 per cent equity stake in their specific business areas.
The transaction is subject to FCA approval.
The combined group said the deal would “provide critical mass” in terms of the development and growth of funds under management, but also “in serving to attract and retain the best talent the marketplace has on offer”.
The transaction will not have an impact on any of the investment teams, the group said, but added there would be back office “operational efficiencies”.
Lukas van der Walt, chief executive of Sanlam UK, said: “We have been busy in recent years building the infrastructure and resources to create market leading wealth and asset management offerings in the UK. This is another important milestone on that journey.”
Derrick Dunne, director and founder of Four, said: “In positioning Sanlam and Four closer together, we create a more diversified business with a significant increase in assets under management.
“Underpinning the business are small specialist investment teams operating within an investment led, entrepreneurial culture. This will never change and performance will always remain each team’s focus. The ownership structure directly aligns our fund managers’ interests with those of our clients. We are very optimistic for the future.
