"The transaction is part of Peregrine's strategy to build a larger presence in the asset management space in South Africa," says Peregrine Holdings CEO Jonathan Hertz. "Cannon will continue to operate as an independent boutique value asset manager, from an investment, management and operational perspective, but with the support and backing of the larger Peregrine Group."
Geoff Blount, CEO of Cannon Asset Managers, says they are delighted with the transaction. "Peregrine has vast expertise in growing highly-respected investment-related businesses from which Cannon will benefit tremendously. At the same time, the independent owner-managed ethos of our business will remain uninterrupted." Cannon, which was founded by chief investment officer, Dr Adrian Saville in the late 1990s, manages R3bn of assets in domestic and offshore mandates.
"We have been exploring opportunities to grow the Peregrine group through niche acquisitions, particularly in businesses that would add value to the group," comments Hertz. "We have admired Cannon Asset Managers over many years and we are impressed by their focussed commitment, specialised investment philosophy and strong brand in the institutional and retail investment markets. We believe that, with increased access to capital and full commitment from a large, listed holding company, Cannon will be able to increase their distribution footprint and grow their assets under management."
According to Blount, Cannon will use its relationship with Peregrine to build market share and increase its brand recognition. "Through Peregrine's financial and non-financial backing, we will be able to build a mainstream presence for the business."
Cannon follows a deep value investment approach and has outperformed the JSE FTSE All Share Index by 4.6% per annum since 2000. Cannon also builds a range of private client portfolios for individual investors. This acquisition will complement the existing portfolio of Peregrine companies in the wider wealth and asset management arena.
