Old Mutual buys major South African investment company for R2.2 billion
Old Mutual has acquired a majority stake in 10X Investments from its own private equity business in a deal worth R2.2 billion.
Old Mutual bought the majority stake from Old Mutual Private Equity (OMPE), part of Old Mutual Alternative Investments, and DiGAME Investments (DiGAME).
While technically owned by one of OMPE’s funds, the private equity business still maintained oversight of 10X and closely monitored its operations.
The Old Mutual Group said that the deal marks an important step in the company’s evolution as a leader in passive, technology-enabled investment products.
The deal is valued at R2.2 billion, and 10X management will retain a significant stake in the business.
The transaction is still subject to customary conditions and regulatory approvals, with completion expected in Q2 2026.
OMPE and DiGame saw the opportunity to partner with 10X in 2014, a pioneer in the low-cost retirement savings market in South Africa.
“Our thesis was to move the needle on retirement outcomes by lowering fees, simplifying choices and using technology at scale,” said Jacci Myburgh, Co-Head at Old Mutual Private Equity.
The business has scaled massively since it was acquired by OMPE and DiGame, with 10X’s assets under management rising to R68 billion.
Today, 10X is servicing over 60,000 clients, with a market-leading position in net flows into passive products, ETFs and smart beta solutions.
The 10X brand pushed into the direct-to-consumer market by acquiring CoreShares in December 2022.
What next
“For Old Mutual, this strategic acquisition supports the competitive delivery of investment capability into the South Africa market, positioning the Group as a major force in the rules-based passive investment market,” said CEO Jurie Strydom.
“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.”
Stydom added that the deal represents an acceleration of Old Mutual’s retail direct strategy, with 10X strongly positioned in the self-directed retail market.
“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.”
10X will continue to operate under the strong leadership of its current management teams and retain its independent structure and brand.
The business will work in close partnership with Old Mutual Wealth, where management teams have already identified multiple avenues to create immediate value.
The management team will also retain a meaningful ownership stake in the business, ensuring continuity of leadership and strategy.
“The outgoing shareholders provided the capital and strategic support to grow with purpose,” said Tobie van Heerden, Chief Executive of 10X Investments.
“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.”
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