Stellar Capital Partners, a diversified investment holding company listed on the Johannesburg Stock Exchange, has sold the asset management business of Cadiz to Warwick.

The sale and purchase will be subject to securing all necessary regulatory approvals.

Peter van Zyl, Stellar CEO, said: “We have recently reviewed our future strategic direction and focus within the greater Stellar Group and have been looking for the right strategic partner for Cadiz and the sale of Cadiz Asset Management to Warwick represents a very positive and important step for the future of Cadiz.” 

“For some 20 years, Cadiz has earned a reputation for the development of innovative structured financial products, hedge funds and money market fund excellence and we are proud of our association with this great asset management company,” he said.

“In Warwick, we have found the ideal partner to take the Cadiz business forward and to share in its future success. We are confident that the synergies between the two businesses will be maximised and that the deal will be particularly beneficial for the clients,” he added.

Founded in Cape Town 20 years ago, Cadiz is a financial services group specialising in institutional and personal investments through the wholly owned subsidiaries Cadiz Asset Management, Cadiz Life and Cadiz Collective Investments, which are wholly owned subsidiaries of Cadiz Asset Management Holdings.

Cadiz Asset Management is an independent fund manager with both institutional (55%) and personal (45%) investment clients.

Cadiz manages a suite of funds, including South Africa’s top-performing money market fund over the past 10 years. 

The acquisition of the Cadiz business lifts Warwick’s assets under management and administration to over R30bn.

Ian Kilbride, Warwick CEO, said: “We are delighted with the deal to acquire the business of Cadiz and to partner with Stellar Capital going forward. Cadiz is a company that I, and indeed the broader financial services industry, have respected for many years. The deal will add value to Warwick in three respects. Firstly, it will add further quality asset management professionals with a successful and proven track-record to our team. Secondly, the Cadiz suite of funds will add to our existing suite of funds and portfolio offering.”

“Thirdly, the acquisition will take Warwick into the retail and institutional asset management space, which forms part of our three-year strategic plan. The Cadiz acquisition is the first of a number of deals we hope to conclude in the coming 36 months.”