Deal raises AUM of Special Situations Asset Management to $600mln
KUWAIT CITY: Global Investment House (Global) announced that its Special Situations Asset Management team has signed a portfolio management agreement with one of the Kuwaiti banks to manage its portfolio of special situation assets worth $40mn. The portfolio consists of diversified assets that are considered non-core to the bank. Global's role is to manage these assets, enhance their value and ensure optimal realization proceeds.
Special Situations Asset Management offers tailored asset management solutions to clients seeking value enhancement and optimal realization of portfolios that are considered non-core and difficult to manage. It covers a spectrum of assets including listed and private equities, alternative investments, among others, across the MENA region.
The team has been managing assets for clients of similar nature for the past two years and has so far successfully completed exits worth more than $180mn at price levels exceeding clients' target valuations by more than 50 percent.
Abdul Hamid Mihrez, Senior Vice-President, Special Situations Asset Management said: "We are proud to be assigned by the bank to manage its portfolio of non-core assets. This mandate is a recognition for the team's commitment, the role it has played in managing such assets and the achievements since we signed the first mandate two years back".
Managing portfolios for eventual realization is proving to be more challenging and complex than it used to be. The task can be very costly and time consuming, effectively becoming a drain on financial and management resources. "As an independent Asset Manager, Global develops an orderly realization plan thereby creating regular and optimal cash returns and frees up Clients' time to allow them to focus on core business operations", Mihrez added.
In addition, the team has specialized professionals with comprehensive experience with such asset classes. It enjoys years of direct and complimentary experience in investment banking, full cycle private equity transactions and brokerage. It offers unique and tailored asset management services with the comprehensive regional platform of Global.
He concluded, "Our success depends on our ability to remain focused on our clients' main objective, optimal realization, by applying a total portfolio management approach and making more informed holding and selling decisions thus creating an improved risk-return tradeoff by setting aside principles of loss aversion".
It is worth noting that Global is among the very few investment companies in the region with expertise and competencies in such mandates. With this mandate, the total assets managed by the Special Situations Asset Management team stands at around $600mn in diversified asset classes, sectors and markets.
© Arab Times 2015
