UK wealth manager Credo has announced a strategic merger with South African investment solutions provider Anchor Capital.
The deal is subject to regulatory approval in the UK and South Africa.
Both firms offer wealth management services to the high-net-worth retail and financial intermediary market segments.
By partnering, Credo and Anchor said they will be able to “leverage each other’s strengths” and offer a “seamless global proposition”.
The combined business will provide UK investors with access to a broad range of investment solutions, and both domestic and global investment solutions to South African investors.
It will also offer an investment platform with access to virtually any security, fund or currency in the world.
The partnership will see both companies unite under a common shareholding structure.
Senior management teams will cooperate, but each firm’s day-to-day operations will remain independent.
There will be no change to the way either firm manages its respective investment solutions.
Anchor’s investment team will continue to provide a growth-based set of funds and portfolios, while Credo will independently continue with its value-orientated investment strategies.
Credo chair Roy Ettlinger said he is “excited” that the transaction will enable the firm to transition to the next phase of developing a “larger, more sophisticated wealth management business”.
“[The partnership will] enable the business to provide a wider range of solutions to all client segments,” he added. “I look forward to continuing the journey with my new partners.”
Anchor chair Mike Teke said the merger is an “exciting step” for Anchor. “Scale is becoming increasingly important in our industry and both businesses will be enhanced by the partnership.”
