Old Mutual Alternative Investments (OMAI) has reached an agreement to acquire the 50% of African Infrastructure Investment Managers (AIIM) that it does not already own from joint venture partner Macquarie Infrastructure and Real Assets (MIRA) in an undisclosed deal. AIIM was established in 2000 as a 50/50 joint venture between the two companies, and since then has developed into one of Africa’s leading infrastructure investment managers with over $1 billion under management across five infrastructure funds.
Citing expectations that the global alternative investment industry will be worth around $13 trillion by 2020 and remain the fastest growing segment of the asset management industry globally for the next 10 years, Paul Boynton, OMAI’s CEO, commented that the transaction allows Old Mutual to acquire a business with strategically significant growth opportunities. As Africa’s attraction to global investors increases, AIIM’s position as an established pan-African asset manager allows AIIM to capitalize on a key growth sector.
“We are excited about the ownership of a business which has shown an excellent track record for investors over a 15-year period. AIIM is recognized as one of Africa’s market leaders in infrastructure transaction execution and asset management and is increasingly seen as a partner of choice by infrastructure investors and developers alike,” he said. “We couldn’t have asked for better results from AIIM when we first established the joint venture with MIRA and we are excited about the investment pipeline AIIM faces and the opportunity we see to deploy investor capital for attractive returns.”
AIIM is expected to continue to operate as an autonomous business, sourcing and executing deals from its offices in South Africa, Kenya and Nigeria.
Jurie Swart, CEO of AIIM, says that given their strong focus on Africa, Old Mutual is a natural fit for AIIM. “We have enjoyed a strong and fruitful relationship with MIRA for 15 years, and this transaction is a mutual decision by the shareholders to give AIIM the optimal structure to support its future growth.”
Boynton further explains that the transaction underlines Old Mutual Investment Group’s overall African strategy, which focuses on expanding its presence in Africa where infrastructure plays a crucial role. “This acquisition facilitates the leveraging of AIIM’s resources and infrastructure across the broader Old Mutual Group, while also broadening Old Mutual’s geographic footprint, most notably in Africa, and introducing new client opportunities for the enhancement of cross-selling and distribution opportunities.”