Investec

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Investec
Public company
Traded as JSE: INL, LSE: INVP
Industry Financial services
Founded Johannesburg, 1974
Headquarters London, United Kingdom
Sandton, South Africa
Key people
 Hugh Herman, Chairman
Stephen Koseff, CEO
Bernard Kantor, MD
Products Private Banking
Capital Markets
Investment Banking
Asset Management
Property Activities
Wealth Management
Investment Management
Revenue £1,905.4 million (2014)[1]
£462.7 million (2014)[1]
£331.7 million (2014)[1]
Subsidiaries Investec plc (on LSE):
List
  • Investec Asset Management Ltd
    Investec Bank plc
    Investec Bank (Australia) Ltd
    Kensington Group plc
    Investec Wealth and Investment Ltd
    Leasedirect Finance Ltd

Investec Limited (on JSE):
List
  • Investec Bank Ltd
    Investec Bank (Mauritius) Ltd
    Investec Securities Ltd
    Investec Asset Management Holdings (Pty) Ltd
    Investec Property Ltd
    Investec Bank Switzerland AG (IBSAG)
Website www.investec.com

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 United Kingdom, South Africa and Australia.[2] Investec is dual listed[3] on the London Stock Exchange[4] and the Johannesburg Stock Exchange.[5] Investec is a FTSE 250 company.[6]

Investec's South African headquarters are at 100 Grayston Drive, Sandown, Sandton. Investec's UK headquarters are at 2 Gresham Street in Central London. Investec's Irish headquarters are at The Harcourt Building, Harcourt Street, in Dublin.

History

Investec was founded as a small leasing and financing company in 1974 in Johannesburg by Larry Nestadt, Errol Grolman and Ian Kantor. It has expanded through a combination of organic growth and strategic acquisitions.[7]

It secured a banking licence in 1980[8][9] 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.[8]

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.[8]

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.[8]

In 1998, Investec acquired Guinness Mahon, a leading London based merchant bank, and Henderson Crosthwaite, its stockbroking arm, for £95m.[10] It also bought Hambros plc, another London based merchant bank the same year.[11]

It was first listed on the London Stock Exchange in 2002.[8] In 2003 in a Black Economic Empowerment transaction[8] 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.[12]

In 2007, Investec plc acquired Kensington Group plc[13] and Experien (Pty) Ltd.[14]

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.[15]

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.[16]

Operations

LTI TX4 "Silver" advertising for Investec

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.[7]

Products and divisional structure

Investec is organised as a network comprising six business divisions: Asset Management, Wealth & Investment, Property, Private Banking, Investment Banking and Capital Markets.[7] The head office provides certain group-wide integrating functions and is also responsible for central funding and the Trade Finance business.

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 (DLC) structure.[17]

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.[17]
  • 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.[17]
  • Investec operates as if it is a single unified economic enterprise.[17]
  • Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company.[17]
  • Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross guarantees between the companies.[17]

Empowerment in South Africa

Investec's approach to transformation within South Africa involves:

  • Fostering the creation of new black entrepreneurial platforms[18]
  • Serving as a source of empowerment financing[18]
  • Encouraging internal transformation by bringing about greater representivity in the workplace. Investec focuses on creating black entrepreneurs within its organisation[18]

Sponsorships

Cricket

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, will run until 2021 and is the longest sponsorship agreement secured in ECB’s history.[19]

Rugby

Investec is involved in a number of rugby sponsorships around the world, as they feel 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".[20]

Investec previously sponsored the Investec Internationals Series (formerly the Investec Challenge) played at Twickenham Stadium, England.[21]

Investec is in the third year as the sponsor of the Investec Super Rugby competition in Australia, New Zealand and South Africa.[22][23]

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.[24][25]

In 2010 Investec announced that they are the official sponsors of the Tri Nations rugby competition in New Zealand for the second year running.[26][27]

Horse racing

Investec has become a long term sponsor of the Epsom Derby festival in the UK until 2013. The illustrious horse-racing event is now known as the Investec Derby.[28][29]

Investec also sponsors the Investec Cape Derby in South Africa.[30]

Football

Investec has become 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.[31][32][33] In 2014, Investec became the official shirt sponsor for Widnes F.C. in the North West Counties Football League Division One.[34]

ProMaths

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.[35]

Other

Investec Loyal about to win the 2011 Sydney to Hobart, taken from Sandy Bay, Hobart, Tasmania, Australia

Other sponsorships include the Nelson Mandela 90th Birthday Tribute in London's Hyde Park[36] and Russian Tennis Player Elena Dementieva for the 2008 Wimbledon tournament as well as the Australian Open in January 2009.[37]

References

  1. ↑ 1.0 1.1 1.2 Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ 7.0 7.1 7.2 Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Investec enlarges its footprint Business Times
  11. ↑ Investec does it the niche way in London Business Times
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Investec buys UK's biggest sub-prime mortgage lender The Daily Telegraph (London), 30 May 2007
  14. ↑ Investec's Australia move Sydney Morning Herald, 19 May 2008
  15. ↑ Investec buys Rensburg for £412 million London Evening Standard, 30 March 2010
  16. ↑ Investec completes NCB takeover Daily Business Post, 12 June 2012
  17. ↑ 17.0 17.1 17.2 17.3 17.4 17.5 Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ 18.0 18.1 18.2 Financial Sector Charter Report
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ International Rugby Academy South Africa
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  26. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  27. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  28. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  30. ↑ Investec Cape Derby will be a thriller
  31. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  32. ↑ Investec becomes the official cup shirt sponsor for Tottenham Hotspur
  33. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  36. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  37. ↑ Investec supports Elena Dementieva

External links

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