Carmel Wealth, an investment holding company specialising in wealth and risk management, has announced the completion of three new agreements with independent financial advisers (IFAs) who see Carmel as a valuable partner in supporting their succession and growth strategies.
These investments underscore Carmel Wealth’s commitment to driving future growth and delivering superior outcomes for IFAs. Since its inception in 2022, Carmel Wealth has experienced solid growth in its adviser base by providing IFAs with strategic growth opportunities and flexible retirement and succession solutions. By assisting with long- term capital, technology enablement, compliance and risk services, investment solutions, and proposition enhancements, advisers can deliver superior outcomes to their clients and unlock enterprise value.
In the largest of the three transactions, Carmel has acquired a minority interest in a premier multi-family wealth office based in the Western Cape. The transaction will see Carmel’s platform support the founder with strategic planning, succession, compliance, and technology over the long-term, ensuring ongoing market-leading service for high-net-worth families.
Transactions have also been concluded with two investment-focused advisery practices active across the South African market leveraging Carmel’s succession planning and infrastructure support.
Addressing a gap in the adviser market
The transactions announced today were driven by IFAs that sought to address a daunting challenge: balancing the need for effective succession planning and growth while maintaining their much-prized independence. The existing corporate options – offered by consolidators owned by asset managers or life insurers – can come at a cost to IFAs.
These models often strip away the decision-making power that makes so many advisers successful in the first place. They typically dictate transaction terms, impose brand changes, require adoption of the buyer’s products and infrastructure, and remove the autonomy advisers need to effectively run their businesses. This fundamental mismatch between advisers’ needs and the current consolidation offerings presents an opportunity for genuine and meaningful market innovation.
Advisers are often left choosing between swift transitions that sacrifice autonomy and drawn-out processes that protect their business vision. Carmel Wealth’s model bridges this gap, offering advisers an attractive alternative that balances expediency with the ability to retain control over business operations and client experience.
Nico Marais, Chair of Carmel Wealth says that Carmel Wealth offers a new way forward for advisers that is gaining traction in the market, as high quality IFAs recognise the value of maintaining their independence and flexibility as they take the next steps for their businesses. “As South Africa’s wealth management landscape evolves, the opportunity lies in embracing models that empower advisers to put their clients first and thrive without compromise. The future belongs to those who challenge the status quo and build on the values of independence, choice, and true partnership,” he explains.
According to Hans De Nysschen, CEO of Carmel Wealth, the transactions announced today are a realisation of the proven solution we provide to IFAs wanting to sell their businesses or join an established group. “We value the entrepreneurial drive of IFAs as an asset, and recognise the benefits of advisers maintaining autonomy in their business decision-making. As the costs of compliance, technology, and general operations are making it increasingly difficult for smaller advisery firms to remain sustainable, we expect to play an important role in further consolidation within the IFA market segment.”
