US-based Prudential Financial has joined forces with LeapFrog Investments Group to acquire a minority stake interest in South African wealth and advice firm Alexander Forbes Group.
The financial terms were undisclosed.
Under the terms of the deal, Prudential Financial, with LeapFrog Investments acting as the investment manager, will acquire a minority interest in Alexander Forbes from global asset manager Mercer.
The transaction builds upon Prudential Financial’s partnership with LeapFrog Investments to access financial services markets in Africa and deliver financial tools to emerging consumers.
Since 2016, Prudential Financial and LeapFrog Investments have invested in markets across the African continent, including Enterprise Group in Ghana and Icea Lion in Kenya.
‘Strategically important growth market’
Pavan Dhamija, Prudential Financial regional president of Africa, India, Indonesia, and business development, said: “We are excited to broaden our presence in Africa and enter South Africa with an investment in Alexander Forbes through our partnership with LeapFrog Investments.
“This transaction underscores Prudential’s continued focus on Africa as a strategically important growth market and our vision to be a global leader in expanding access to investing, insurance, and retirement security.
“We identified Alexander Forbes as the market leader in South Africa best capable of advancing our vision and strategy.”
Dawie de Villiers, chief executive of Alexander Forbes, added: “We are delighted to welcome long-term strategic shareholders of the caliber of Prudential Financial and LeapFrog who believe in our vision and support our strategy to achieve it.
“Their investment is an affirmation of the impact that we make on people’s lives, the quality of our team, and the potential that exists to unlock even greater value for our stakeholders.
“The conviction of our long-term strategic shareholders, including Arc, can provide confidence to the market in the investment case for Alexander Forbes as we accelerate our transformation towards becoming the most impactful provider of financial advice to institutional clients and individual customers.
“It is an exciting development, and we look forward to leveraging the global insights available through Prudential Financial to enhance our value proposition.”
The deal is subject to regulatory approvals and LeapFrog’s appointment as investment manager is subject to approval by the Mauritius Financial Services Commission.