FNZ to acquire Silica from Ninety One

FNZ plans to purchase South African administration firm Silica from Ninety One.

FNZ, a leading global wealth management platform with over €700 billion in assets under administration, will acquire South African third-party administration firm Silica, from Ninety One.

Silica provides third party administration and related technology solutions to asset managers and investment product providers, including Ninety One, throughout South Africa. The company employs more than 400 people and services some 1.3 million active investor accounts, with more than R1.85 trillion (approximately €100 billion) in assets under administration. 

The acquisition supports FNZ’s long-term strategy of expanding the accessibility of wealth management services in the South African market.

This transaction provides Silica and its clients with an independent owner, solely dedicated to asset and wealth management infrastructure, with international scale. Silica’s employees join a rapidly growing global platform business, with a long-term sustainable focus.

For Ninety One, the transaction enables an opportunity to simplify and focus on its core business areas, which includes its investment platform, a key part of its offering to financial advisors and their clients in South Africa.

Kim McFarland (pictured), finance director for Ninety One and chair of Silica, said the transaction is a vote of confidence in the South African market, which has huge potential in business process outsourcing, by an established global player. She added that they Ninety One is confident that Silica’s large customer base will continue to benefit from the highest standards of service under FNZ’s ownership.

The transaction is subject to regulatory approval and its value is not being disclosed.

In a statement, Adrian Durham, chief executive of FNZ Group, said:

“We are excited to be making a substantial investment in the South African asset and wealth management sector with the acquisition of Silica. We admire the strong client franchise that Silica has created over the past 20 years and look forward to building on this excellent foundation to continue the evolution of wealth management in South Africa.”

Garth Smith, chief executive of Silica added that they believe that there is a strong culture and value fit between Silica and FNZ, which presents significant opportunities for clients and employees.