Sanlam Investment Holdings, through an agreement, will acquire an approximate 69% stake in Catalyst Fund Managers (CFM), a specialist in managing listed real estate investments in South Africa and globally for retail and institutional investors.
The aim of the partnership is to diversify and strengthen Sanlam Investments’ current asset management capabilities and to allow CFM to remain on top of their game whilst being supported by Sanlam’s operational and retail distribution strength. The transaction is subject to the fulfilment of certain conditions, including regulatory approvals.
“CFM executive management and staff support the change in shareholding,” said Michael Arbuthnot, CEO of CFM. “Our passion is managing assets in the listed real estate sector. This transaction will allow us to do that even better.”
CFM Group founder André Stadler agrees. “This opportunity allows us to strengthen our owner managed and investment-led culture,” he explained. “It extends shareholding to a broader management team to ensure retention of our talent and increases aligned investment in our funds.”
“CFM has been a consistent performer in the listed property market for many years, which resonates with the Sanlam story,” added Nersan Naidoo, CEO of Sanlam Investments. “For both Sanlam and CFM, the objective is to identify value opportunities for our clients without taking on undue risk. It provides our clients with a compelling asset class as we search for alternative sources of performance.”
In addition to the partnership with CFM, Sanlam Investment Management Holdings will acquire a 100% stake in an Irish business, CIG Fund Management Company Limited, to complement the Group’s international investment management platform, Sanlam Asset Management Ireland. This entity manages funds domiciled in Ireland. This transaction, like the one involving CFM, is also subject to certain conditions, including Irish regulatory approvals.