A majority interest in Principal Investment Holdings Limited, the private client portfolio management specialist, is to be acquired by Sanlam, a South African financial services group.
Founded over 20 years ago, Principal specialises in discretionary portfolio management for private individuals, family trusts and smaller corporate clients. The deal with Sanlam will give Principal access to a broader range of investment capabilities, whilst allowing its day-to-day operations to continue unchanged.
Principal will continue as an autonomous business, operating from its three existing locations in Sevenoaks, London and Bath, and with the Principal brand name maintained.
Sanlam, which already has a successful private client portfolio management business in its home market, is seeking, through this deal with Principal, to build a substantial presence in the UK.
“The acquisition of Principal again reflects the consistent progress the group is making in all the elements of the strategy it began implementing four years ago. Principal is the type of high quality private client investment business we were looking for in the UK as another building block in our strategy for growth and diversification through selective acquisitions, geographical expansion and extended financial solutions to our clients,” says Johan van Zyl, CEO, Sanlam Group.
“South African investors have become more sophisticated about their investment needs and are increasingly looking for offshore opportunities and a global spread of risk. Our clients are very comfortable dealing with UK businesses. This deal with Principal therefore strengthens our offshore offering and creates new investment opportunities for our clients,” says Danil Kriel, CEO, Sanlam Private Investments.
“Throughout our discussions with Sanlam, we have been particularly impressed by the calibre of their management team and the strategic fit with Principal’s own operations and ambitions. As well as providing the backing of a large financial services operation, with 35 billion of assets under management, Sanlam’s involvement will allow us to enhance the investment service we offer our existing clients and introducers, whilst maintaining the high level of personal service on which our business has been built,” adds Anne Gilbert, group managing director, Principal.