Black as­set man­agers get royal treat­ment

The Citizen (Gauteng) - - BUSINESS -

Trans­for­ma­tion is one of the big­gest chal­lenges fac­ing the lo­cal as­set man­age­ment in­dus­try, with black as­set man­agers still own­ing only 4% to 5% of as­sets un­der man­age­ment in the coun­try.

Chris Meyer, the CEO of RMI In­vest­ment Man­agers, says that about 28% of the bou­tique man­agers in South Africa are black – but the chal­lenge re­mains to make these busi­nesses sus­tain­able.

Given the clear com­mer­cial op­por­tu­nity in em­pow­er­ment as­set man­age­ment, RMI In­vest­ment Man­agers has set up a sep­a­rate com­pany fo­cused on this mar­ket. Royal In­vest­ment Man­agers, which has Royal Bafo­keng Hold­ings as its main share­holder, will part­ner with pre­dom­i­nantly black-owned as­set man­agers.

“The rea­son we de­cided to set up a sep­a­rate en­tity with Royal Bafo­keng is that we think the busi­ness does need its own iden­tity and ma­jor­ity black own­er­ship,” Meyer says.

The af­fil­i­ate model used by both com­pa­nies is to take mi­nor­ity eq­uity stakes in bou­tique as­set man­agers and then sup­port their growth and

There are prob­a­bly only three prop­erty man­agers in the coun­try who are of high qual­ity that de­liver con­sis­tent al­pha to clients, and Ses­fik­ile is one of them.

Ka­belo Rikhotso Royal In­vest­ment Man­agers CEO

sus­tain­abil­ity.

Royal In­vest­ment Man­agers re­cently com­pleted its first trans­ac­tion – a stake in spe­cial­ist listed prop­erty man­agers Ses­fik­ile Cap­i­tal that has built up an ex­cep­tional rep­u­ta­tion in a short space of time. It gives Ses­fik­ile a huge boost in its plans to grow its global and re­tail busi­ness.

“Royal wants to part­ner with af­fil­i­ates that share our val­ues and cul­ture,” says Royal In­vest­ment Man­agers CEO Ka­belo Rikhotso. “There are prob­a­bly only three prop­erty man­agers in the coun­try who are of high qual­ity that de­liver con­sis­tent al­pha to clients, and Ses­fik­ile is one of them.”

Rikhotso says that Royal In­vest­ment Man­agers has plans to part­ner with around six to eight af­fil­i­ates over the short term.

“So we will add a lot of value at a strate­gic level by sit­ting on our af­fil­i­ates’ boards and help­ing to for­mu­late strate­gies for these com­pa­nies go­ing for­ward.” – Patrick Cairns

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