Stonehage Fleming, the international multi-family office, has agreed to buy the business and assets of Rootstock Investment Management, which is based in South Africa.
Subject to regulatory approval, the deal encompasses Rootstock SCI Worldwide Flexible Fund and the Rootstock Global Equity UCITS Fund.
The intention is to merge the UCITS fund with Stonehage Fleming's Global Best Ideas Equity fund, managed by Gerrit Smit, head of Stonehage Fleming Global Equity Management.
The Rootstock fund will be renamed the Stonehage Fleming SCI Worldwide Flexible Fund, and continue to be managed by Johan Barkhuysen, reporting to Smit in London.
Stonehage Fleming said: "This will bring additional scale in AUM and further investment expertise, together with an on the ground presence in Stellenbosch, further strengthening Stonehage Fleming's position in the South African domestic market."
On completion, Rootstock founder Thys du Toit will join Stonehage Fleming as a Partner.
Chris Merry, Stonehage Fleming Group CEO, said: "We warmly welcome Rootstock and its clients to Stonehage Fleming. We have known Rootstock for many years and are confident of the cultural fit between the firms, already sharing a number of clients. This transaction continues our strategy of supplementing organic growth through select acquisitions and we will continue to look for companies which share Stonehage Fleming's values and culture, as we have already demonstrated to positive effect with Cavendish in 2020, and Maitland in 2022."
Thys du Toit, founder of Rootstock Investment Management, said: "Stonehage Fleming and Rootstock's similar culture, core values and investment philosophy could not be better if by design. Stonehage Fleming is a firm whose investment acumen Rootstock holds in high regard and many of Rootstock's clients already know and value Stonehage Fleming and Gerrit Smit, a respected industry leader. This new chapter within the Stonehage Fleming family presents an exciting opportunity for us all."
