Investec unveils aggressive plan
South African-based Investec has embarked on ambitious expansion plans for its Australian-based financial services business.
The group is aiming to organically grow funds under management and advice in Investec Private Advisers from the present $300 million to $3 billion by 2005. The group is also on the hunt for acquisitions to accelerate growth even further.
Investec's aim to bolster its presence in the financial planning industry is part of an overall restructure of the group's Australian operations. Having recently lured former ANZ private banking chief Farrel Meltzer to head its Australian operation, Investec plans to shed its image as a bank largely involved with South African expatriates in private banking and funds management and expand into corporate finance, securities and structured finance.
The bank's aggressive approach, explains director Michael Pillemer, is to recruit senior and experienced "private client advisers". Recent recruits are an indication of the calibre of person Investec is looking to bring on board.
Janet Smith is distribution general manager. Smith was previously with Colonial as licensed financial services general manager where she was responsible for the restructure of the Colonial owned dealer groups.
Private client advisers include Robert Lipman and Tim Macphillamy. Lipman was previously chief executive of Ord Minnett Investment Planning. Macphillamy is a Fellow of the Institute of Chartered Accountants with an investment banking background.
Investec has its own dealers license. Pillemer envisages increasing the number of advisers by tenfold over the next year. These will be based in Sydney, Melbourne and Brisbane.
"Our strategy is not to pay huge multiples for dealer groups where the value can easily dissipate. We thus focus on hand-picking high calibre advisers and bringing them on board with attractive and mutually beneficial long-term arrangements," he says.
Pillemer adds that of great help in attracting such people is Investec's trademark entrepreneurial and independent culture and flat corporate structure that is being carried into the Australian operation.
"We are a single integrated organisation with no institutions within institutions. We are a meritocracy where performance is rewarded. These are all valuable in attracting the type of advisers we are looking for," he says.
Aside from the salary and bonus arrangements, the package that is selectively made available includes an innovative profit share arrangement and equity participation in Investec which is imminently to transfer its listing from Johannesburg to London.
"We offer an opportunity at a bank with global reach while at the same time advisers can build up a local presence where they share in the rewards," Pillemer says.
Advisers target individuals with $1 million to $5 million in investable funds.
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