SOUTH AFRICA – FNZ, a global wealth management platform, has acquired South African third-party administration firm Silica from Ninety One, following receipt of the necessary regulatory approvals.
The acquisition further supports FNZ’s long-term strategy of expanding the accessibility of wealth management services in the South African market.
Silica was established by Ninety One (then Investec Asset Management) in 1999 and provides third-party administration and related technology solutions to asset managers and investment product providers (including Ninety One) throughout South Africa.
“We are excited to be making a substantial investment in the South African asset and wealth management sector with the acquisition of Silica,” Adrian Durham, Chief Executive of FNZ Group, said.
“We admire the strong client franchise that Silica has created over the past 20 years and look forward to building on this excellent foundation to continue the evolution of wealth management in South Africa.”
“We look forward to continuing our good relationship with Silica as one of our outsourcing partners following the transaction.”Kim McFarland – Finance Director, Ninety One
Silica employs more than 400 people and services some 1.3 million active investor accounts, with more than R1.85trn (US$134.21m) in assets under administration.
“We believe that there is a strong culture and value fit between Silica and FNZ, which presents significant opportunities for our clients and employees,” Garth Smith, Chief Executive of Silica, said.
“We thank Ninety One for their support to date, and look forward to continuing to work with them as a client.”
This transaction provides Silica and its clients with an independent owner, solely dedicated to asset and wealth management infrastructure, with international scale.
“We are proud of the business we have built in Silica over the last 20 years and are excited by this next chapter in its journey. We wanted to find a strong, reputable partner to take Silica forward and in FNZ, we believe we have found a leader in service and innovation that will support the continued growth of this important business,” Kim McFarland, Finance Director, Ninety One, and Chair of Silica said.
“We look forward to continuing our good relationship with Silica as one of our outsourcing partners following the transaction.
“This transaction is a vote of confidence in the South African market, which has huge potential in business process outsourcing, by an established global player. We are confident that Silica’s large customer base will continue to benefit from the highest standards of service under FNZ’s ownership.”
Silica’s employees join a rapidly growing global platform business, with a long-term sustainable focus.
For Ninety One, the transaction enables an opportunity to simplify and focus on its core business areas, which includes its investment platform, a key part of its offering to financial advisors and their clients in South Africa.