Domestic brokerage house, SMC Group, had entered into joint venture agreements (JV) with Sanlam Investments to offer wealth and asset management services.

Sanlam Investments is the investment arm of South African financial services giant, Sanlam Ltd., which will invest $50 million in the new joint venture.

Under the deal, both companies would create two new businesses in the country, a wealth management company and an asset management company.

The arrangement was made possible through an acquisition into the SMC group of companies, including warrants; which will ultimately create a 5% equity stake for Sanlam Investments in SMC and its two flagship companies, christened SMC Global Securities Limited & SAM Global Securities Ltd.

According to SMC, the partnership will enable the company to focus on its client and distribution strengths and the company will be able to leverage off Sanlam’s recognized strengths in asset management product knowledge, global reach and governance processes.

In addition, the JV will permit SMC to spread out its product range with new high-quality investment products and provide a framework in which it can develop a true asset management culture for its investment activities.