Managing director Fatima Vawda said the acquisition “will enhance 27Four’s reputation as a leading black participant within the sector and allow the company to leverage its position to further support the broader participation of black people and black-owned companies within the sector”.
The deal, which does not include the Prescient Retirement Funds, is subject to regulatory and board approvals but is expected to be finalised on 1 August 2018.
Financial details were not disclosed.
Currently, multi-management asset managers in South Africa can only pool the investments of multiple clients in one of two ways.
The first is through a collective investment scheme management company and the second is to have a life company licence, reports local publication Moneyweb.
After “renting” Prescient’s life licence for 10 years, Vawda told the news site that, “having built our client base and our brand, our exco decided that we now need to own the means of doing business”.
The decision to get a life licence coincided with Prescient reassessing its life business, which 27Four says it has “ambitious plans to grow”.
However, Prescient Holdings will continue to make use of the Prescient Life licence to provide policies and life-pooled portfolios to its policyholders.
The name 27Four relates to the day of South Africa’s first democratic election on 27 April 1994.
The company provides pooled multi-manager and fiduciary management solutions for retirement funds, corporations and individuals.
Prescient has offices across South Africa; as well as in Namibia, China, Dublin, London and Jersey.
The group offers investment management, private wealth management, stockbroking, retirement solutions and platform and administration services.