Warwick’s Kilbride kicks off acquisition spree with Cadiz
The first of a number of deals in the coming 36 months
Stellar Capital Partners, the investment company in which tycoon Christo Wiese is a major shareholder, has sold small asset management business Cadiz for an undisclosed sum.
A press statement released on Wednesday confirmed Cadiz had been sold to Cape Town-based wealth management business Warwick – which is headed by former Appleton prime mover Ian Kilbride.
Appleton was briefly listed on the JSE in the late 1990s before being bought by PSG Konsult’s asset management division with certain parts remaining behind in IMR, which eventually formed the basis for Conduit Capital.
Stellar CEO Peter van Zyl said the company had recently reviewed its future strategic direction and focus. “We 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.”He said Cadiz had earned a reputation for the development of innovative structured financial products, hedge funds and money market funds.
Prior to the takeover by Stellar, Cadiz was in a downward spiral with assets under management shrinking rapidly. It is understood that Cadiz CEO Shawn Stockigt will not be following his team to Warwick.
Kilbride said the Cadiz acquisition took Warwick into the retail and institutional asset management space – which formed part of the company’s three-year strategic plan.
“The Cadiz acquisition is the first of a number of deals we hope to conclude in the coming 36 months.”
He said the acquisition of the Cadiz business lifted Warwick’s assets under management and administration to over R30-billion.
The Cadiz sale has heightened expectations that Stellar – which trades at a substantial discount to its intrinsic value – may look at unlocking further value for shareholders by selling other investments. The company’s portfolio includes investments in asset manager Prescient, security technology group Amecor, electronics manufacturer Tellumat and JSE-listed Torre Industries.