The latest mergers and acquisitions at international multi-family office Stonehage Fleming.

Stonehage Fleming agreed on Friday to acquire the business and assets of Rootstock Investment Management, an investment firm based in South Africa.

On completion of the transaction, which is subject to regulatory approval, Stonehage Fleming will acquire all the operating activities of Rootstock, including the Rootstock SCI Worldwide Flexible Fund and the Rootstock Global Equity UCITS Fund, the firm said in a statement. 

This will bring additional scale in AUM and further investment expertise, together with an on-the-ground presence in Stellenbosch, strengthening Stonehage Fleming’s position in the South African domestic market.

Rootstock Global Equity UCITS Fund will be amalgamated with Stonehage Fleming’s flagship Global Best Ideas Equity fund, managed by Gerrit Smit, head of Stonehage Fleming global equity management, the firm added. 

Rootstock SCI Worldwide Flexible Fund will be renamed the Stonehage Fleming SCI Worldwide Flexible Fund. It will continue to be managed by Johan Barkhuysen, reporting to Smit in London. On completion, Thys du Toit, founder of Rootstock Investment Management, will join Stonehage Fleming as a partner, the firm said.

Welcoming the move, Chris Merry, Stonehage Fleming Group CEO said: “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,” he continued.

Thys du Toit said: “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.”
 
Stonehage Fleming was advised on the transaction by Stonehage Fleming Advisory and Stonehage Fleming Law.

The firm provides a range of services from long-term strategic planning and investments to day-to-day advice and administration to families and wealth creators, advising on over £60 billion ($75 billion) of assets.