Investec
Investec is an international banking and wealth management group. It provides a range of financial products and services to a client base in Europe, Southern Africa, and Asia-Pacific.
Investec is dual-listed on the London Stock Exchange and the Johannesburg Stock Exchange. It is a constituent of the FTSE 250 index.
History
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 growth and 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, giving Investec Management and staff control of the company.In 1990, Investec acquired property management company I. Kuper & Company Limited, Corporate Merchant Bank Limited and trade finance company Reichmans Limited. Investec entered the UK market in 1992, by acquiring London-based Allied Trust Bank Limited, this was the its first international acquisition. In 1998, Investec acquired Guinness Mahon, a leading London based merchant bank, and Henderson Crosthwaite, its stockbroking arm, for £95 million. 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 Ltd.
Investec plc acquired the remaining shares in Rensburg Sheppards plc in 2010. This business has since been rebranded as Investec Wealth & Investment 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.
In December 2017, Investec acquired Amicus Commercial Finance and rebranded it as Investec Capital Solutions.
In September 2018, following a strategic review, the Boards of Investec plc and Investec Limited announced that Investec Asset Management would become a separately listed entity. In March 2020, the Asset Management business was demerged and listed as Ninety One plc. The new name is in recognition of the brand's heritage – it was in 1991 that the investment firm was started in South Africa.
Operations
Investec employs approximately 8,300 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, India, Jersey, and the United States.Products and divisional structure
Investec consists of two areas of activity, namely: wealth, and investment and banking. Its specialist banking divisions include private banking, for high net worth and high income individuals, and corporate and investment banking, providing lending, transactional banking, treasury and trading, advisory and investment services.Legal structure
In July 2002, Investec became the first South African company to list on both the London and Johannesburg stock exchanges, by implementing a dual listed companies structure.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 Africa
- Fostering the creation of new black entrepreneurial platforms
- Serving as a source of empowerment financing
- Encouraging internal transformation by bringing about greater representivity in the workplace. Investec focuses on creating black entrepreneurs within its organisation
Sponsorships
Investec became principal sponsor of the England and Great Britain Women’s Hockey teams in July 2011, from grassroots to international level, for an undisclosed sum. The agreement was initially for a term of five years, and in March 2016 the deal was extended through to the Tokyo Olympics in 2020.
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". From 2000 to 2011 Investec sponsored England Rugby Union home autumn internationals. The 35 games throughout the 12-year period were known as the Investec International Series and were played at Twickenham Stadium, England. In 2010 Investec became the official sponsors of the Tri Nations rugby competition in New Zealand, now known as The Rugby Championship. In 2016 the deal was extended through to 2020, and in 2019 the competition was known as The Investec Rugby Championship in New Zealand. Investec has sponsored the Super Rugby competition since 2011, when it acquired naming rights in New Zealand. Investec also supports the International Rugby Academy South Africa which aims to capitalise on an untapped demand for high performance in playing and coaching rugby in South Africa.
Investec became a long-term sponsor of The Derby festival in the UK in 2009, with the current deal running until 2026. The two-day race meet became known as the Investec Derby Festival, incorporating two of the five British Classic Races, The Oaks and The Derby, the latter of which is also commonly known as the Greatest Flat race in the World. Investec has also sponsored the Investec Cape Derby in South Africa since 2009.
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.
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.
Other sponsorships included the Nelson Mandela 90th Birthday Tribute in London's Hyde Park.