Momentum Metropolitan Holdings (MMH) has agreed to buy OUTsurance Group’s 100% stake in RMI Investment Managers Group (Pty) Ltd (IMG) for an undisclosed amount.
The transaction, which was signed on Monday, will enable the diversified insurance and investment group to increase its participation in the asset management market significantly, Momentum Metropolitan said in a statement.
OUTsurance took over the JSE listing of its former parent, RMIH, in 2022.
MMH has been an indirect minority shareholder in IMG and Rand Merchant Investment Holdings (RMIH) since 2015, when IMG launched its multi-affiliate investment management model.
The transaction will increase Momentum Metropolitan’s indirect minority stakes in boutique asset managers Ethos, Granate, Northstar, Perpetua, Sentio, and Truffle. It will also give Momentum minority stakes in Sesfikile and Visio for the first time.
The transaction is subject to the customary terms and conditions, including approval by the competition authorities.
Jeanette Marais, the chief executive of Momentum Metropolitan, said: “Over the last eight years, our focus has been on the affiliate strategy, which involves identifying the best boutique investment talent in South Africa and investing in their businesses without interfering. We aim to offer strategic guidance and a distribution network to help them achieve sustainable growth. However, we understand the importance of their independence and value their entrepreneurial identities.”
Marais said Momentum Metropolitan’s entry into market segments where they have previously not been competitive was a significant step towards good earnings diversification and access to a broader range of investment styles.
IMG’s management team will continue with their active affiliate engagement model after the transaction.
Alida de Swardt, the chief executive of IMG, said: “As Momentum Metropolitan has already been a shareholder in IMG for the past eight years, we are comfortable that they understand and endorse our strategic purpose and ambition of building the next generation of independent investment management businesses in South Africa.
“They are familiar with our entrepreneurial partnership approach whereby we act as a supportive, non-interfering, long-term shareholder that understands the importance of independence.”
