Sanlam has sold its UK wealth division (Sanlam Wealth) to funds managed by Oaktree Capital Management for £140 million.
Private equity house Oaktree said it would support Sanlam Wealth’s growth plans enabling the creation of an “independent and agile wealth management business”.
Oaktree is also invested in Ascot Lloyd, a national IFA consolidator in the UK. The Sanlam Wealth and Ascot Lloyd businesses will operate independently.
The business will continue to operate under the Sanlam Wealth brand through a transition period, though Oaktree said a new brand would be announced “in due course”.
The transaction is subject to regulatory approval and is expected to close in the first quarter of 2022.
Jonathan Polin, the chief executive of Sanlam UK, will lead the new business along with some existing members of the management team. Oaktree said it would announce the full details of the leadership of the “refocussed” business “at the appropriate time”.
Jonathan Polin, the chief executive of Sanlam UK
Mr Polin said: “The sale of Sanlam Wealth to Oaktree ensures the business remains both operationally strong and financially stable in the long-term, while allowing us to drive forward as a faster and more agile independent wealth manager.
“This will be a new firm with a new purpose and a new way of working, with a refreshed commitment to delivering the very best products and services for our clients.
“We will have greater autonomy to flex to the needs of our people, and I look forward to working with Oaktree to assess and implement the opportunities available to us as we all look to share in the business’s future successes.”
Federico Alvarez-Demalde, managing director at Oaktree added: “We firmly believe that the award-winning business built by Jonathan and his management team is a strong platform for growth in the fragmented wealth management market.
“Our investment will be targeted at providing excellent products and services for clients, development opportunities for staff and supporting management in the delivery of its innovative acquisition strategy. We look forward to working with Jonathan and team as they embark on the business’s next chapter.”
Sanlam Wealth is presently owned by South Africa’s largest insurer, Sanlam Ltd.
