Investec Ernst & Company
, of Johannesburg, said today it is acquiring the assets of Royce Investment Group
, based on Long Island, in Woodbury, New York.
The acquisition provides Investec with an additional 8,000 active accounts, both retail and institutional, and brings the number of retail brokers in the group from 155 to 270.
Frank Magnani, senior vice president of global marketing and sales said, "We looked at a number of firms, and Royce appeared to fit our mold and fit in with the company. When we make an acquisition, we look to see if the company will fit in with what we already have."
One of the reasons Royce was attractive, according to Magnani, was its Long Island location, a geographic region the company targets. "They were the right size in reference to active accounts and the number of brokers that come on board. There was also a synergy between the executive staff at both companies."
In 1998 Investec purchased Stuart Coleman
and has offices all over the world including the United Kindom, Israel, Hong Kong and the U.S. (Manhattan, Chicago and now Long Island). The growth of the company allows for additional distribution of its fund line-up. The mutual funds offered in the United Kingdom do not permit U.S. investors but there are presently eight funds offered through Guinness Flight, Magnani said.
The Private Client Group of Investec now has a total of 25,000 active accounts, 270 brokers and $3 billion of non-discretionary funds under management.
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