Grindrod Asset Management and the Plexus Group have agreed to merge their asset management businesses in a move set to create an entity with assets under management in excess of R8bn.
Prieur du Plessis, chairman of the Plexus Group, says, “The merging of these two boutique entities will create a strong player in the asset management industry. We have identified many synergies over the past few years and it became clear that a formal merger of the complementary Plexus and Grindrod Asset Management investment teams and supporting services would be beneficial to both shareholders and clients alike.”
The groups said merger has been agreed in principle, subject to signing of agreements and obtaining regulatory approval. The new entity will operate under the Grindrod Asset Management brand and will incorporate institutional asset management, private client wealth management, investment products including unit trust distribution, and a stock broking business.
Senior executives from both Grindrod Asset Management and Plexus will fill the leadership positions in the new entity. Dr. du Plessis will be the non-executive chairman, with Mark Logan of Grindrod Asset Management and Paul Stewart of Plexus Asset Management as executive directors. Grindrod Asset Management’s Ian Anderson will take the role of Chief Investment Officer, while Ian Pallot of Plexus will head up finance and operations.
“The mutual working relationship established by merging the fund ranges highlighted some obvious advantages of combining these businesses and paved the way for creating a consolidated investment management business,” says Mark Logan, executive director.
“The merger will give the Plexus team access to the additional proprietary research of the experienced Grindrod Asset Management investment team and wide coverage of broader aspects of the investment markets, which we believe will lead to excellent investment outcomes over time,” says Paul Stewart, executive director.