EFG-Hermes, an investment bank of Egypt, plans to expand its business in Libya, Turkey and Iraq to increase its asset management arm by 50 percent when it will complete its joint venture with Qatar’s QInvest.
Kashif Siddiqui, head and managing director of asset management at EFG-Hermes, said that EFG-Hermes would work with QInvest and the deal would be completed in May. Kashif Siddiqui will also be the co-CEO of the joint venture with QInvest.
EFG-Hermes will hold 40 percent and QInvest will own 60 percent of the venture.
Siddiqui added that within a few years, EFG-Hermes planed to increase its asset under management to about $5billion from $3.4 billion now.
This tie-up with QInvest will concoct the biggest investment bank in Middle East and North Africa (MENA). This deal will also help to get asset management operations.
QInvest is injecting $250 million into this venture, and it will help EFG-Hermes to expand.
Siddiqui said in an interview in London that this deal would help to make a partner with similar aim, and would allow them to access new markets.
EFG-Helmes can be benefited as QInvest has a strong bonding with Qatar’s sovereign wealth funds who are the regular investor of various sectors including telecoms, property and finances.
Karim Awad, head of investing banking at EFG-Hermes, said that the deal would enable them to penetrate to some of the biggest sovereign funds in the world.
Siddiqui said that though QInvest was a not big investment bank only set up in 2007, the deal with it would bring more adroitness in Islamic finance.
EFG-Helmes is one of those investing banks which are trying to become regional powers. The VTB Capital of Russia and BTG Pactual of Brazil are also included in EFG.
Source: [Ahram online]