US investment firm Oaktree Capital Management has agreed to buy Sanlam’s UK wealth arms for £140m ($191m, €164m).
The deal will include Sanlam UK’s 100% shareholding in Sanlam Private Investments (UK) and Sanlam Wealth Planning Holdings UK and their subsidiaries.
Sanlam Private Investments (UK) carries out business as Sanlam Private Wealth and operates as an investment management firm. It provides wealth management and stock broking solutions, and serves high net worth individuals and their families, trusts, charities, and corporates.
Sanlam Wealth Planning Holdings UK offers financial planning, risk management, investment advice, retirement and inheritance tax planning as well as corporate and employee wealth services.
Following the transaction, the business will continue to operate under the Sanlam Wealth brand through a transition period. A new brand and identity reflecting the business and its future ambitions will be announced in due course.
Jonathan Polin, chief executive of Sanlam UK, will lead the new business with the continued support of key members of its management team. The leadership team for the refocussed business will be announced at a later date.
Oaktree previously invested in IFA firm Ascot Lloyd. The Sanlam Wealth and Ascot Lloyd businesses will operate independently.
Polin said: “The sale of Sanlam Wealth to Oaktree ensures the business remains both operationally strong and financially stable in the long-term, while allowing us to drive forward as a faster and more agile independent wealth manager.
This will be a new firm with a new purpose and a new way of working, with a refreshed commitment to delivering the very best products and services for our clients. We will have greater autonomy to flex to the needs of our people, and I look forward to working with Oaktree to assess and implement the opportunities available to us as we all look to share in the business’s future successes.”
The transaction is dependent on regulatory approvals in South Africa and the UK. The deal is expected to complete during Q1 2022.
This M&A deal in line with Sanlam’s strategy to simplify its UK operations and reallocate capital to Africa and India.
Sanlam has already sold its UK life and pensions arm to consolidator Chesnara for £39m.