Affiliated Managers Group (AMG) is to acquire an equity interest in South African hedge fund firm Abax Investments with the firm’s senior partners continuing to hold the majority of the equity of the business and direct day-to-day operations.
With approximately USD5.4 billion (ZAR74 billion) in assets under management as of September 30, 2015, Abax specialsed in South African equity, fixed income, and strategic and tactical asset allocation strategies, as well as a separate global equity strategy. Abax employs a disciplined, fundamental research approach to investing in companies with strong potential earnings growth over the medium and long term, and has steadily delivered excellent returns for its clients across mandates and over all relevant time periods. Based in Cape Town, Abax serves retail and institutional clients across an array of equity, balanced, and hedge fund strategies. The firm was established in 2003 and is led by senior partners Anthony Sedgwick, Marius van Rooyen, Omri Thomas, and Steve Minnaar.
“Abax is an excellent addition to AMG’s group of leading return-oriented specialists, and our partnership with the firm illustrates the truly global nature of our prospect universe, as well as the worldwide brand and reputation we have built over the past two decades as the global partner of choice to independent firms,” says Sean M Healey (pictured), Chairman and Chief Executive Officer of AMG. “The addition of Abax will enhance the diversity and breadth of AMG’s existing product set, and from its base in South Africa, the firm is well-positioned to benefit from the region’s outstanding growth prospects. We have deep respect for the experience and talent of the management team, and believe that with its outstanding performance and consistent investment approach, Abax has tremendous opportunities for long-term growth.”
“We look forward to continuing to deliver strong returns for our clients over the long term as both an AMG Affiliate and an independent firm, given AMG’s unique partnership approach which maintains Affiliate autonomy,” says Sedgwick. “In addition, our partnership with AMG provides access to the scale and resources of a leading global asset management company. AMG’s strategic capabilities, which have been uniquely successful in enhancing the organic growth of boutique managers across key client markets around the world, will meaningfully augment our forward growth prospects. We are excited to work with our new partners across a number of initiatives, including product development and distribution globally.”
As part of the transaction, Abax’s senior partners have agreed to long-term commitments with the firm. The transaction is expected to close by December 31, 2015. The terms of the transaction were not disclosed.
