1 November 2009
Sanlam will take an initial equity interest of 29.9% (subject to various regulatory approvals) in the firm for an undisclosed sum. FOUR’s executives will not be selling any of their equity and thus, the company remains majority employee owned. This provides our original external private investors with an attractive exit mechanism.
Sanlam International Investment Partners is a division of the Sanlam Group (founded 1918), a listed South Africa financial services Group with a market capitalization of US$6bn. The Group has investment management capabilities in Southern Africa, the UK, Asia and India. SIIP has a strategic objective to expand its asset management footprint through direct investment in carefully selected specialist investment management businesses in specific regions. An important criteria is the retention of a strong management ownership structure that allows its investment partners the required autonomy to continue to drive their businesses and investment performance delivery. SIIP is fully aligned to it’s partners in which it has a shareholding, and will assist and support in any area where it can add value. FOUR will benefit from SIIP’s expertise and capabilities in areas such as distribution channels, fund platforms, governance, business strategy input, access to capital for expansion and leveraging service provider relationships.
FOUR was established in 2006 as a UK equity specialist by Tom Carroll, Chris Rodgers, Ted Williams and Derrick Dunne. In 2009, Dino Fuschillo joined the firm to establish a European equity capability.
FOUR’s investment philosophy is grounded on an intrinsic value approach, undertaking in depth fundamental research and analysis on stocks and entailing a rigorous team based selection process. It focuses on concentrated portfolios with an objective to generate alpha over the long term and portfolios have performed strongly relative to Index since launch in 2007. FOUR has attracted a blue-chip client base and now manages assets in excess of £450m.
Derrick Dunne, a founding partner of FOUR, said “This is a very positive development for FOUR. We are very well capitalised, have attracted significant assets and have strong relative performance since inception. Nevertheless, we wanted to take this opportunity to partner with such a well regarded global investment organisation and are confident this will enhance our capabilities for clients and overall business prospects. Whilst FOUR will remain an autonomous and investment led firm, focused on delivering excellent investment performance, the relationship with Sanlam will give comfort to our clients and prospects that there is a strong financial and operational partner behind FOUR.”
Hendrik Pfaff, Managing Director of SIIP said, “FOUR is a quality specialist investment management business that complies with all the key criteria that SIIP looks for in an investment partner. The senior management team is experienced and impressive, the investment process is proven and the performance track record outstanding. We look forward to assist in developing FOUR into one of the leading specialist asset management businesses in Europe.”