RMI Investment Managers launched an affiliate investment manager model in 2015, the first of its kind in South Africa.

We act as a supportive non-interfering long term shareholder that provides working and seed capital, strategic input, operational infrastructure and distribution capability for the investment teams of our affiliates.

 

It is key to our business model that affiliates retain their independence, particularly when it comes to their investment capabilities. By partnering with us, affiliates can concentrate on what they do best – managing investments to achieve performance that will leave an imprint.

 

We, together with the affiliate team members, share in the economic success of their business.

Our current affiliates have partnered with us in one of the following three ways:

* Note: RMI IM and Royal jointly hold 30% in Ethos Private Equity

** Note: Potential to add future affiliates

Why we do this?

Nearly 40% of investment management firms that started between 1990 and 2013 vanished by means of acquisition, merger or closure with the average lifetime close to only five years. Reasons for this failure include lack of steadfast shareholder support, poor business models, lack of differentiation and poor investment returns.
To address this, we partner with independent investment management teams in South Africa by becoming a shareholder to assist them in taking their business to the next level.

 

We are able to do this through:

  • The RMI association.
  • Business acumen and strategic insight of our executive team and board.
  • Asset raising capabilities.
  • Operational robustness.
  • Economies of scale offered to the affiliates.

 

We also provide additional distribution capabilities to complement our affiliates’ own distribution teams. We have established our own retail distribution team and partnered with MMI Holdings, a distribution business that has a long history with the financial advisor industry. We use the insights and relationships from these sources to understand how to best service the changing adviser market.

RMI IM will help address the challenges boutique investment teams face:

STRATEGIC SUPPORT

  • Credible shareholder
  • Enhance capacity and experience
  • Partner that understands investment management

ALIGNMENT OF INTEREST

  • Track record of backing entrepreneurs
  • Focused on maximising future value
  • Strategic involvement in succession planning

FINANCIAL SUPPORT

  • Start-up capital
  • Seed capital
  • Scale capital

DISTRIBUTION AND MARKETING

  • Credible brand in IFA and retail channels
  • Open architecture distribution
  • Distribution relationship with RMI portfolio companies (e.g. MMI) and network

OPERATIONAL SUPPORT

  • Operational robustness and excellence
  • Compliance and regulatory aspects
  • Economies of scale and cost efficiencies