Investec is an international specialist banking and asset management group. It provides a range of financial products and services to a client base in three principal markets: the UK and Europe, Southern Africa, and Asia-Pacific.
|Dual-listed public company|
|Traded as||JSE: INL|
|Headquarters||London, United Kingdom|
Sandton, South Africa
|Hugh Herman, Chairman, |
Stephen Koseff, CEO
|Products||Private Banking |
|Revenue||£2,443.5 million (2018)|
|£637.5 million (2018)|
|£505.5 million (2018)|
|Subsidiaries||Investec plc (on LSE): |
Investec Limited (on JSE):
Investec was founded as a small leasing and financing company in 1974 in Johannesburg, South Africa by Larry Nestadt, Errol Grolman and Ian Kantor. It has expanded through a combination of organic growth and strategic acquisitions. It secured a banking licence in 1980 and was first listed on the JSE Securities Exchange in South Africa in 1986, after merging with Metboard, a trust company. In 1988, Investec Bank Limited was restructured into Investec Group Limited ("IGL"), giving Investec Management and staff control of the company.
In 1990, Investec acquired property management company I. Kuper & Company (Pty) Limited, Corporate Merchant Bank Limited (formerly Hill Samuel Merchant Bank Limited) and trade finance company Reichmans Limited. Investec entered the UK market in 1992, by acquiring London-based Allied Trust Bank Limited ('ATB'), this was the first international acquisition by the Group. In 1998, Investec acquired Guinness Mahon, a leading London based merchant bank, and Henderson Crosthwaite, its stockbroking arm, for £95m. It also bought Hambros plc, another London based merchant bank the same year. It was first listed on the London Stock Exchange in 2002. In 2003 in a Black Economic Empowerment transaction empowerment partners acquired a 21.5% stake in the South Africa-listed Investec.
In 2005, Investec sold its UK Private Client Stockbroking operation, Carr Sheppards Crosthwaite Limited to Rensburg plc. Investec retains a 47.7% interest in the combined entity, Rensburg Sheppards plc. In 2007, Investec plc acquired Kensington Group plc and Experien (Pty) Ltd.
Investec plc acquired the remaining shares in Rensburg Sheppards plc in 2010. This business has since been rebranded as Investec Wealth & Investments and incorporates other wealth activities previously operated through the Bank.
In June 2012, Investec plc completed the €32 million acquisition of Irish brokerage firm, NCB. As a result, Investec now employs more than 240 specialists in Ireland.
Investec employs approximately 8,200 people worldwide and operates primarily in South Africa, the United Kingdom, Australia and Ireland. It also has banking operations in Switzerland, Mauritius, Guernsey, Hong Kong, Jersey, Namibia, Botswana, Canada, Taiwan and the United States.
Products and divisional structureEdit
The main features of the DLC structure are:
- Investec plc and Investec Limited are separate legal entities and listings, but are bound together by contractual agreements and mechanisms.
- Investec plc is the holding company for the majority of the group's non-Southern African operations and Investec Limited is the holding company for the majority of the group's Southern African operations.
- Investec operates as if it is a single unified economic enterprise.
- Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company.
- Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross guarantees between the companies.
Empowerment in South AfricaEdit
Investec's approach to transformation within South Africa involves:
Investec announced a ten-year title sponsorship of Investec Test Match cricket for the England and Wales Cricket Board on 24 November 2011 at Lord's Cricket Ground. This sponsorship runs until 2021 and is the longest sponsorship agreement secured in the ECB’s history.
Investec has been involved in a number of rugby sponsorships around the world, stating that "rugby embodies Investec's beliefs in collaborative teamwork, innovative play and determination and it’s for these reasons that we support many rugby initiatives".
Investec also sponsors the Investec Cape Derby in South Africa.
Investec became the official shirt sponsor for Tottenham Hotspur's domestic cup games and UEFA Champions League games for the 2010/2011 and UEFA Europa League games for the 2011/2012 seasons. This sponsorship marked the first promotion into the football world for Investec. In 2014, Investec became the official shirt sponsor for Widnes F.C. in the North West Counties Football League Division One.
Since 2005 Investec has been sponsoring a flagship project started by the Kutlwanong Centre for Math, Science and Technology. The project aims at improving the mathematics and science skills of students from historically disadvantaged regions across South Africa. The project has been a huge success year on year, with most of the students obtaining distinctions in mathematics and science, and their other subjects. In 2014 the project was awarded the Mail & Guardian Investing In The Future STEM award.
As of March 2019[update] Investec also helps to fund, along with several other large corporate sponsors, a private software engineering college called Wethinkcode, with campuses in both Johannesburg and Cape Town, with the objective of confronting the youth unemployment crisis in South Africa by providing free tuition for eligible students.
The company was awarded Most Trusted Asset Management Brand, South Africa in 2016 by Global Brands Magazine Award.
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