Boutique asset manager Optimum Investment Group (OIG) has secured a 40% ownership stake in Obsidian Capital, effective 1 October.
OIG and Obsidian Capital will continue to operate as separate entities, allowing each business to maintain its autonomy, independent investment teams, and client focus, OIG said in a statement this week.
It said the strategic partnership is intended to leverage the complementary strengths of both organisations, enhancing opportunities for discretionary fund management and bringing OIG closer to leading asset managers.
OIG offers Obsidian economies of scale by strengthening its operational capacity and enhancing marketing and distribution capabilities.
OIG, which was founded in 2014, reports assets under management of more than R13 billion. Obsidian Capital was founded in 2007 by Richard Simpson and Royce Long, who both spent 14 years at RMB Asset Management.
Louwrens Smith (pictured), the group chief executive of Optimum Financial Services, said partnering with Obsidian was a strategic step forward for OIG.
“It allows us to broaden our reach with access to hedge fund capabilities, forge stronger industry relationships and create new growth opportunities, while maintaining the integrity and independence of the respective investment teams. We are excited about the potential this partnership brings, not only for our businesses but also for our clients.
“We are combining Obsidian’s boutique investment expertise with OIG’s scale and operational muscle. Together, we can unlock new growth, broaden our offering, and deliver even more value to clients,” Smith added.
Long said the partnership with OIG was an important milestone for Obsidian. “By combining our complementary strengths, we can achieve greater scale, enhance our distribution, and continue to deliver exceptional outcomes for our clients. Together, we are well positioned to grow from strength to strength.”
OIG and Obsidian Capital said they remained committed to delivering high-quality investment solutions, leveraging each other’s expertise, and creating lasting value for their clients.
