Discovery’s hidden R33 billion investment giant

Discovery’s Cogence asset manager, which has a deep relationship with BlackRock, has more than doubled its assets under management in the past 18 months. 

The company has seen its assets surge from just over R15 billion in June 2024 to over R33 billion by the end of 2025. 

This has largely been driven by consistent product launches as Cogence expands its offering and the strong performance of its underlying funds. 

Cogence has specifically tried to tap into South African investors looking for offshore exposure, leveraging its relationship with BlackRock to give local clients access to high-quality global investment strategies. 

This relationship is deeper than merely enabling access to BlackRock’s investments, with Cogence also being able ot utilise the firm’s Aladdin Wealth platform to test its strategies and enhance outcomes. 

Founded in August 2022, Cogence remains a relatively small asset manager despite its rapid growth, with its R33 billion in assets standing in contrast to Discovery Invest’s R150 billion. 

Both of the company’s investment managers are growing rapidly and are looking to more than double their assets under management in the coming years. 

While Discovery Invest is a more traditional unit trust provider, Cogence is significantly more specialised and tailored to client demands. 

The firm, where available, taps into Vitality data to perfect individual portfolios. Analysing their lifespan and behavioural data, Cogence is able to offer products most likely to meet a client’s investment goals. 

CEO Jonel Matthee-Ferreira has previously explained that it is vital for an asset manager to scale relatively quickly to ensure it is self-sustaining. 

“There was some legacy money that we took over, but I think it is important to see the business scale when you are a discretionary fund management business,” Matthee-Ferreira explained. 

“On the product side, we have made sure that our range of solutions is enough for what the market wants. So, last year, we launched an income fund of funds and our model portfolios.”

These regular product launches have helped Cogence grow its assets under management and gradually attract a wider range of clients. 

Going private

With Cogence having ensured that its range of products is enough for what the market wants, it is beginning to move into different areas to enhance its competitive advantage. 

Cogence has made it a particular focus to expand into alternative investments, such as funds that have exposure outside of public capital markets. 

At the beginning of February 2026, the asset manager revealed its private markets offering, launched in close partnership with BlackRock. 

The launch introduces two portfolios that open exposure to private equity, private credit, infrastructure and real assets – an opportunity set historically reserved for institutional investors. 

Cogence explained that private markets have become increasingly important for retail investors due to the gradual shrinking of public markets and the fact that many companies stay private for longer. 

As a result, many of these companies, such as those at the forefront of the AI boom, are not available on public exchanges for retail investors to access. 

BlackRock’s data indicates that nearly 90% of all companies generating more than $100 million in revenue are privately held. 

This broader opportunity set lets investors participate in structural global ‘mega forces’ reshaping economies – such as AI and the energy transition. 

This is particularly the case in sectors like infrastructure, where demand for data centres, power grids and digital platforms continues to accelerate.

As a result, the opportunity set for investors is greatly expanded if they can access private markets. This not only increases diversification but also enables the potential for substantially higher returns. 

Cogence’s private market investments are best paired with public equities to smooth out returns, ensure liquidity, and maximise diversification. 

“Private markets are reshaping how modern portfolios are constructed. South African investors can now pair the liquidity of public markets with the growth potential of private markets,” Matthee-Ferreira explained. 

In this instance, it is key for Cogence to have a partner such as BlackRock, whose scale gives it access to private market deals that would never be on the table ordinarily.