South African Insurer Sanlam Buys Stake in Ninety One for $276M
TLDR
- Sanlam acquires 12.3% stake in Ninety One Ltd. for 5 billion rand, with plans to transfer around 400 billion rand of assets.
- Ninety One's CEO, Hendrik du Toit, sees potential for substantial cash flows in private markets from the collaboration with Sanlam.
- Collaboration between asset managers and insurers, like Sanlam and Ninety One, mirrors a trend in the industry to boost access to capital and expand revenue streams.
South African insurer Sanlam will acquire a 12.3% stake in asset manager Ninety One for 5 billion rand ($276 million), according to a joint announcement. The deal, subject to shareholder and regulatory approval, will involve Sanlam transferring around 400 billion rand of assets to Ninety One.
Sanlam’s CEO, Paul Hanratty, stated that the insurer aims to become a key investor in Ninety One’s private and specialist credit strategies. Ninety One, led by CEO Hendrik du Toit, manages over 3.3 trillion rand in assets. Du Toit highlighted the partnership's potential to unlock "substantial cash flows" from global private markets.
This collaboration reflects a growing trend of alliances between asset managers and insurers to enhance access to capital and expand fee-based revenue streams. Similar deals have been pursued by global firms like Apollo, Blackstone, and KKR, which leverage insurance-linked assets to drive growth in private markets.
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Key Takeaways
The Ninety One-Sanlam deal highlights the strategic synergies between asset managers and insurers. Asset transfers from Sanlam will bolster Ninety One’s portfolio, enhancing its reach in private credit markets. For Sanlam, the investment provides exposure to fee-generating strategies, aligning with its growth objectives. The move mirrors global trends where asset managers partner with insurers to access stable capital, diversify earnings, and strengthen their market positioning. Partnerships like these underscore the increasing interdependence between asset and insurance sectors, driven by shared goals of scalability and long-term asset growth.
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