Old Mutual acquires R2.2bn stake in 10x Investments

Old Mutual on Tuesday said it had acquired a majority stake in 10X Investments (10X) from Old Mutual Private Equity (OMPE), part of Old Mutual Alternative Investments, and DiGAME Investments (DiGAME) for R2.2 billion.

10X is one of South Africa’s fastest-growing investment firms, with assets under management (AUM) at more than R68bn, servicing over 60 000 clients, with a market-leading position in net flows into passive products, ETFs and smart beta solutions.

Old Mutual said this marked an important next step in the company’s evolution as a leader in passive, technology-enabled investment solutions in South Africa. The 10X management will retain a significant stake in the business.

The transaction is subject to customary conditions and regulatory approvals, with completion expected in the second quarter of 2026.

In 2014, OMPE and DiGAME saw the opportunity to partner with 10X, a pioneer in the low-cost retirement savings market in South Africa, where challenges with financial wellness, education, and a poor savings culture persist. This reality guided the strategic decision to build a larger, lower cost and technology-led platform, making passive retirement savings solutions accessible to more people for a meaningful social impact.

10X has focused on capturing the ongoing global generational wealth transfer by delivering low-cost, long-term savings and investment solutions tailored to diverse client needs. The business has scaled significantly since it was acquired by OMPE and DiGAME with AUM of R3bn. 

Through OMPE and DiGAME, 10X has been guided by a stable ownership model that has supported its growth, independence, and client-first approach. The shareholders provided growth capital to build and promote the 10X brand and in partnership with management, supported the strategic push into the direct to consumer market. The execution of bolt on acquisitions, including the acquisition of CoreShares in December 2022, served to further diversify products and channels.

Jurie Strydom, the CEO of Old Mutual, said, “For Old Mutual, this strategic acquisition supports the competitive delivery of investment capability into the SA market, positioning the Group as a major force in the rules-based passive investment market. We share their long-term vision and see this partnership as a way to expand access to quality investment solutions for a wider base of investors.  This also represents an acceleration of our retail direct strategy, with 10X strongly positioned in the self-directed retail market, with future fit technology and a track record of excellent asset growth.   We expect to leverage this leadership position by expanding their distribution reach and providing the capital strength to support sustained growth and returns to shareholders.” 

Old Mutual said 10X will continue under the strong leadership of the current management team and retain its independent structure and brand.  The business will work in close partnership with Old Mutual Wealth.

Farhad Sader, the managing director of Old Mutual Wealth, said, “The management teams of 10X and Old Mutual Wealth have identified multiple areas of opportunity which create immediate value, and we’re delighted to be expanding our existing partnership as 10X enters this next phase of accelerated growth”.  

The management team will retain a meaningful ownership stake in the business, ensuring continuity of leadership and strategy.

Tobie van Heerden, the CEO of 10X Investments, said the partnership with OMPE and DiGAME enabled disciplined scaling while keeping the business focused on client outcomes.

“The outgoing shareholders provided the capital and strategic support to grow with purpose. We expanded our investment manufacturing capabilities, launched new ETF and multi asset solutions and deepened our intermediary partnerships, cementing our position as one of the country’s leading retirement solutions providers and one of its largest ETF issuers. As we enter the next phase we remain committed to accessible, low-cost investing that is simple to understand and use. 10X will always focus on delivering exceptional value to clients, preserving our independence, and building a stronger, more resilient firm for the future. We are confident that 10X has been positioned for sustained growth and continued success, to the benefit of our clients, partners, and employees alike, ” Van Heerden said.

BUSINESS REPORT