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12 September 2023 | 5 - 8 min read
In a transaction signed on 11 September 2023, Momentum Metropolitan entered into a sale agreement with OUTsurance Group (previously Rand Merchant Investment Holdings – RMIH) in terms of which Momentum Metropolitan will acquire RMIH’s share in the RMI Investment Managers Group Proprietary Limited (IMG). The transaction is subject to customary terms and conditions, including approval by the competition authorities. The acquisition will enable the Momentum Metropolitan Group to increase its asset management market participation significantly.
Momentum Metropolitan has been a minority shareholder in IMG alongside RMIH since 2015 when the multi-affiliate investment management model was launched. The transaction will increase Momentum Metropolitan’s minority stake in a range of independent, owner-managed investment businesses with good growth potential.
Jeanette Marais, Group CEO of Momentum Metropolitan says, “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 adds, “When RMIH offered us the opportunity to increase our ownership in IMG, it aligned perfectly with our existing goal to expand our access to a differentiated sector of the investment industry”. The acquisition is a strategic move to complement Momentum Metropolitan’s existing in-house businesses. It not only gives them a minority stake in multiple independent, owner-managed boutiques but also supports transformation and new entrants in the market. Marais is confident that Momentum Metropolitan’s entry into market segments where they previously had not been competitive, is a significant step towards good earnings diversification and access to a broader range of investment styles, stating: “This deal will be crucial for our growth and success, and we are confident in its positive impact on our business”.
IMG’s experienced management team will continue with their active affiliate engagement model post the transaction.
Alida de Swardt, CEO of IMG, expressed her team's enthusiasm for the recent transaction and its potential impact on the future of the business. She emphasised the importance of choosing the right long-term partners to ensure success. She says, “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”. IMG believes that the increased alignment with Momentum Metropolitan will assist its next growth phase, and remain excited and committed to working with its affiliates to support their growth to scale.
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