Investec

Investec
Investec Limited & Investec plc
Company typeDual-listed public company
JSE: INL
LSE: INVP
FTSE 250 component
ISINZAE000081949
GB00B17BBQ50
IndustryFinancial services
FoundedJohannesburg
1974; 50 years ago (1974)
HeadquartersLondon, United Kingdom
Sandton, South Africa
Key people
Philip Hourquebie, Chairman
Fani Titi, CEO
ProductsPrivate Banking
Capital Markets
Investment Banking
Corporate, Business and Institutional Banking
Property Activities
Wealth Management
Investment Management
RevenueIncrease £2,280.4 million (2023)[1]
Increase £830.5 million (2023)[1]
Increase £817.4 million (2023)[1]
Total assetsDecrease £57,183.8 million (2023)[1]
Total equityDecrease £5,331.7 million (2023)[1]
Number of employees
7,400 (2024)[2]
SubsidiariesInvestec plc (on LSE):
List
  • Investec Asset Management Ltd
    Investec Bank plc
    Investec Wealth & Investment Ltd
    Investec Holdings (Australia) Ltd
    Investec Asset Finance plc
    Investec Bank (Channel Islands) Ltd
    Investec Bank (Switzerland) AG
    Investec Irish Branch

Investec Limited (on JSE):
List
  • Investec Bank Ltd
    Investec Bank (Mauritius) Ltd
    Investec Securities (Pty) Ltd
    Investec Asset Management Holdings (Pty) Ltd
    Investec Property Group Holdings (Pty) Ltd
Websitewww.investec.com

Investec is an Anglo-South African 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.[2]

Investec is dual-listed[3] on the London Stock Exchange[4] and the Johannesburg Stock Exchange.[5] It is a constituent of the FTSE 250 index.[6]

History

[edit]

Investec was founded as a small leasing and financing company in 1974 in Johannesburg, South Africa, by Larry Nestadt, Errol Grolman and Ian Kantor.[7] It has expanded through growth and acquisitions.[8] It secured a banking licence in 1980[9][10] and was first listed on the JSE Securities Exchange in South Africa in 1986, after merging with Metboard, a trust company.[11] In 1988, Investec Bank Limited was restructured into Investec Group Limited ("IGL"), giving Investec Management and staff control of the company.[9]

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.[9] Investec entered the UK market in 1992, by acquiring London-based Allied Trust Bank Limited ('ATB'), its first international acquisition.[9] In 1998, Investec acquired Guinness Mahon, a leading London based merchant bank, and Henderson Crosthwaite, its stockbroking arm, for £95 million.[12] It also bought Hambros plc, another London-based merchant bank the same year.[13] It was first listed on the London Stock Exchange in 2002.[9] In 2003, in a Black Economic Empowerment transaction empowerment partners acquired a 21.5% stake in the South Africa-listed Investec.[9]

Investec Loyal, moments before winning the 2011 Sydney to Hobart Yacht Race

In 2005, Investec sold its UK private client stockbroking operation, Carr Sheppards Crosthwaite Limited to Rensburg plc. Investec retained a 47.7% interest in the combined entity, Rensburg Sheppards plc.[14] In 2007, Investec plc acquired Kensington Group plc[15] and Experien (Pty) Ltd.[16]

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.[17]

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.[18]

In December 2017, Investec acquired Amicus Commercial Finance and rebranded it as Investec Capital Solutions.[19]

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.[20] 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.[21]

In April 2023, UK wealth manager Rathbones agreed to buy Investec's wealth and investment businesses in the UK and Channel Islands for £839 million. The deal excludes Investec Bank (Switzerland) and Investec International wealth business.[22]

Operations

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Investec employs approximately 8,200 people worldwide and operates primarily in South Africa and the United Kingdom. It also has banking operations in Ireland, Switzerland, Mauritius, Guernsey, India, Jersey, and the United States.[23]

Products and divisional structure

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Investec consists of two areas of activity, namely: wealth, and investment and banking.[2] 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.[2]

[edit]
Investec advertising on a London TX4 taxi

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 (DLC) structure.[24]

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.[24]
  • 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.[24]
  • Investec operates as a single unified economic enterprise.[24]
  • Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company.[24]
  • Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross guarantees between the companies.[24]

Empowerment in South Africa

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Investec's approach to transformation within South Africa involves:

  • Fostering the creation of new black entrepreneurial platforms[25]
  • Serving as a source of empowerment financing[25]
  • Encouraging internal transformation by bringing about greater representativity in the workplace. Investec focuses on creating black entrepreneurs within its organisation[25]

Sponsorships

[edit]
Investec at the Epsom Derby, 2010

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.[26] The deal covered all home test series and ran for six years until the summer of 2017, when the company exercised a break clause in its contract with the ECB.[27]

Investec became the principal sponsor of the England and Great Britain Women's Hockey teams in July 2011, from grassroots to international level, for an undisclosed sum.[28] The agreement was initially for a term of five years, and in March 2016 the deal was extended for an additional four years but was not renewed when the contract came to an end in August 2020.[29][30]

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".[31] 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 (formerly the Investec Challenge) and were played at Twickenham Stadium, England.[32] In 2010 Investec became the official sponsors of the Tri Nations rugby competition in New Zealand, now known as The Rugby Championship.[33][34] In 2016 the deal was extended through to 2020, and in 2019 the competition was known as The Investec Rugby Championship in New Zealand.[35] Investec has sponsored the Super Rugby competition since 2011, when it acquired naming rights in New Zealand.[36][37][38] 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.[39]

Investec became a long-term sponsor of The Derby festival in the UK in 2009.[40] The deal was extended to run until 2026 but the Jockey Club agreed to terminate the sponsorship in 2020 after the delayed running of the 241st Derby Festival on 4 July 2020.[41][42] 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.[43][44][45] Investec has also sponsored the Investec Cape Derby in South Africa since 2009.[46]

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.[47][48] In 2014, Investec became the official shirt sponsor for Widnes F.C. in the North West Counties Football League Division One.[49]

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.[50]

As of March 2019 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.[51][52]

Other sponsorships included the Nelson Mandela 90th Birthday Tribute in London's Hyde Park.[53]

References

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  1. ^ a b c d e "Annual Results 2023" (PDF). Investec. Retrieved 13 February 2024.
  2. ^ a b c d "About us - Investec". Investec. Retrieved 13 February 2024.
  3. ^ "Corporate Structure". Investec. Retrieved 19 January 2021.
  4. ^ "INVESTEC PLC INVP Stock | London Stock Exchange". www.londonstockexchange.com. Retrieved 19 January 2021.
  5. ^ "Investec Ltd | Johannesburg Stock Exchange". www.jse.co.za. Retrieved 19 January 2021.
  6. ^ "London Stock Exchange Indices". Londonstockexchange.com. Retrieved 18 April 2011.
  7. ^ "Investec Bank Plc - INVP". Fresh Business Thinking. Archived from the original on 19 October 2021. Retrieved 23 April 2022.
  8. ^ "About Investec". Investec.co.uk. 18 November 2010. Retrieved 18 April 2011.
  9. ^ a b c d e f "Investec History". Archived from the original on 20 October 2007. Retrieved 18 April 2011.
  10. ^ "Investec History (current flash applet)". Investec.com. 30 June 2010. Retrieved 18 April 2011.
  11. ^ Musiker, Naomi (1999). Historical dictionary of Greater Johannesburg. Internet Archive. Lanham, Md.: Scarecrow Press. p. 46. ISBN 978-0-8108-3520-7.
  12. ^ Investec enlarges its footprint Business Times
  13. ^ Investec does it the niche way in London Business Times
  14. ^ "Investec Wealth & Investment". rensburgsheppards.co.uk. Archived from the original on 29 April 2011. Retrieved 29 March 2015.
  15. ^ Investec buys UK's biggest sub-prime mortgage lender, The Daily Telegraph (London), 30 May 2007.
  16. ^ Investec's Australia move Sydney Morning Herald, 19 May 2008.
  17. ^ Investec buys Rensburg for £412 million Archived 27 February 2012 at the Wayback Machine, London Evening Standard, 30 March 2010.
  18. ^ Investec completes NCB takeover, Daily Business Post, 12 June 2012.
  19. ^ "Investec acquires Amicus Commercial Finance; rebrands as Investec Capital Solutions". Leasing Life. Archived from the original on 11 October 2019. Retrieved 11 October 2019.
  20. ^ "Investec: Proposed Demerger and Listing of IAM - RNS - London Stock Exchange". www.londonstockexchange.com. Retrieved 11 October 2019.
  21. ^ "Investec AM rebrand Ninety One to list on LSE". Investment Week. 29 November 2019. Retrieved 17 December 2019.
  22. ^ "Rathbones agrees wealth deal with Investec to create £100bn business". Financial Times. 4 April 2023. Retrieved 19 April 2023.
  23. ^ "Contact us". Investec. Retrieved 14 July 2021.
  24. ^ a b c d e f "Structure and management". Investec. Retrieved 18 April 2011.
  25. ^ a b c "Financial Sector Charter report for the year ended 31 December 2008" (PDF). 2 March 2011. Archived from the original (PDF) on 2 March 2011.
  26. ^ Scott, Matt (24 November 2011). "English Test cricket signs 10-year sponsorship deal with Investec". The Guardian. ISSN 0261-3077. Retrieved 24 September 2019.
  27. ^ "Investec to end its sponsorship of England and Wales Cricket Board". 6 January 2017. Retrieved 24 September 2019.
  28. ^ "Investec becomes England & GB sponsor - England Hockey". www.englandhockey.co.uk. Retrieved 24 September 2019.
  29. ^ "Investec extends its sponsorship of Great Britain and England Hockey - England Hockey". www.englandhockey.co.uk. Retrieved 24 September 2019.
  30. ^ staff, Hockey Paper (21 April 2020). "Investec ends sponsorship with England Hockey ahead of Tokyo Olympics". The Hockey Paper. Retrieved 22 December 2020.
  31. ^ "Why Investec sponsors the rugby". Investec.co.uk. 31 March 2011. Retrieved 18 April 2011.
  32. ^ "Investec pulls out of RFU". www.campaignlive.co.uk. Retrieved 27 September 2019.
  33. ^ "Investec Tri Nations". Investec.com.au. 22 February 2011. Archived from the original on 22 February 2011. Retrieved 18 April 2011.
  34. ^ "Investec Tri Nations analysis – New Zealand". Allblacks.com. 28 August 2009. Archived from the original on 3 September 2011. Retrieved 18 April 2011.
  35. ^ "Investec extends partnership with NZ Rugby". Sport. 26 February 2016. Retrieved 27 September 2019.
  36. ^ "About the Super 14". Super14.com. Sports Digital Media. Archived from the original on 22 December 2010. Retrieved 18 April 2011.
  37. ^ "Investec Super 14". Investec.co.uk. 30 January 2011. Archived from the original on 19 July 2011. Retrieved 18 April 2011.
  38. ^ International Rugby Academy South Africa Archived 22 August 2009 at the Wayback Machine
  39. ^ "Investec International Rugby Academy". Investec.co.za. 9 April 2010. Archived from the original on 19 March 2011. Retrieved 18 April 2011.
  40. ^ Wood, Greg (4 May 2009). "Derby wins race for new sponsor". The Guardian. ISSN 0261-3077. Retrieved 25 September 2019.
  41. ^ "Investec extend Epsom Derby sponsorship deal". www.sportinglife.com. Retrieved 25 September 2019.
  42. ^ "Talking Horses: Epsom Derby seeks title sponsor after Investec ends deal". The Guardian. 24 July 2020. Retrieved 22 December 2020.
  43. ^ "Epsom Downs Racecourse". Epsom Downs Racecourse. 5 June 2010. Archived from the original on 18 June 2010. Retrieved 18 April 2011.
  44. ^ "Investec Derby Official Webpage". Investec.co.uk. 22 October 2010. Archived from the original on 13 May 2011. Retrieved 18 April 2011.
  45. ^ "What makes the Epsom Derby so special?". Great British Racing. 24 May 2019. Archived from the original on 25 September 2019. Retrieved 25 September 2019.
  46. ^ Investec Cape Derby will be a thriller Archived 20 February 2010 at the Wayback Machine
  47. ^ "News Archive - tottenhamhotspur.com". tottenhamhotspur.com. Retrieved 29 March 2015.
  48. ^ "Tottenham Hotspur name Investec as second shirt sponsor". BBC News. 17 August 2010. Retrieved 29 March 2015.
  49. ^ "Widnes Football Club announces new shirt sponsorship with Investec". Widnes F.C. Retrieved 14 August 2014.
  50. ^ "Higher maths produces pros". Mail & Guardian. 1 November 2013. Retrieved 10 February 2015.
  51. ^ "SA's free coding college is looking for students - and you don't even need a matric to get in". Business Insider. 22 October 2018. Retrieved 11 March 2019.
  52. ^ Kubheka, Thando. "Youth unemployment now at top of national agenda". Retrieved 16 November 2018.
  53. ^ "News – Nelson Mandela Foundation". nelsonmandela.org. Archived from the original on 2 April 2015. Retrieved 29 March 2015.
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