Multi-family office Stonehage Fleming has agreed to acquire the business and assets of South Africa-based investment firm Rootstock Investment Management for an undisclosed sum.
On completion of the transaction, which is subject to regulatory approval, Stonehage Fleming will acquire all the operating activities of Rootstock, including the Rootstock SCI Worldwide Flexible Fund and the Rootstock Global Equity UCITS Fund.
The deal will boost Stonehage’s assets under management and further investment expertise, together with an on the ground presence in Stellenbosch, further strengthening the company’s position in the South African domestic market.
Subject to regulatory approval, Rootstock Global Equity UCITS Fund will be amalgamated with Stonehage Fleming’s flagship Global Best Ideas Equity fund (“GBI”), managed by Gerrit Smit, head of Stonehage Fleming Global Equity Management.
Rootstock SCI Worldwide Flexible Fund will be renamed the Stonehage Fleming SCI Worldwide Flexible Fund; it will continue to be managed by Johan Barkhuysen, reporting to Gerrit in London.
On completion, Rootstock founder Thys du Toit will join Stonehage Fleming as a partner.
Carry on buying
Chris Merry, Stonehage Fleming group chief executive, said: “We warmly welcome Rootstock and its clients to Stonehage Fleming. We have known Rootstock for many years and are confident of the cultural fit between the firms, already sharing a number of clients.
“This transaction continues our strategy of supplementing organic growth through select acquisitions and we will continue to look for companies which share Stonehage Fleming’s values and culture, as we have already demonstrated to positive effect with Cavendish in 2020, and Maitland in 2022.”
Du Toit added: “Stonehage Fleming and Rootstock’s similar culture, core values and investment philosophy could not be better if by design. Stonehage Fleming is a firm whose investment acumen Rootstock holds in high regard and many of Rootstock’s clients already know and value Stonehage Fleming and Gerrit Smit, a respected industry leader. This new chapter within the Stonehage Fleming family presents an exciting opportunity for us all.”