The two companies have had a formal relationship since 2009, but have now decided to come together in order to “maximise the potential benefits for all stakeholders”.
Sanlam will have an 89.7% stake in the new company, while the existing Four Capital businesses will retain 30% equity stakes in their specific business areas.
The transaction, which is still subject to FCA approval, will have no impact on either company’s existing investment teams or investment processes, and Sanlam said each company will be responsible for its own investment process and the achievement of its own investment objectives.
Director and founder of FOUR, Derrick Dunne, said the merger will create a “more diversified business with a significant increase in assets under management”.
“The ownership structure directly aligns our fund managers’ interests with those of our clients,” he added.
Robert Roux, chief operating officer of Sanlam Investments said: “Our relationship with Four is very successful, with the firm having delivered strong investment performance across all investment products.
“This is an important step to cementing that relationship and indicates Sanlam’s trust and confidence in FOUR’s capabilities.
Click here to see International Adviser’s Asset Allocator with Sanlam CIO Richard Champion.
