"Abu Dhabi Equity Partners (ADEP), the Emerging Markets Sharia-compliant liquidity management instrument specialist launches suite of products to enhance Islamic banks 'excess cash' yield"
"Offering a compelling alternative to cash that capitalizes on three underlying structural growth themes, namely emerging markets, soft commodities and the rise of Islamic finance assets."
"Tenures of up-to 6 months with target returns of US$ LIBOR +400BP, with added safety of having title of underlying assets, and world largest trading companies as prospective counterparties".
"Best-in-class architecture: ADEP focuses on structuring and origination whilst partnering with global leaders in law, Sharia certification, inspection & logistics, custody and admin.; and regional leaders in distribution & origination, to the benefit of clients."
Abu Dhabi Equity Partners, the Cayman registered Emerging Markets Sharia-compliant liquidity management instrument specialist, will be launching its suite of soft commodity backed investment products at the 11th Annual Islamic Finance Summit 2012 in London on 21st - 22nd of February, 2012.
ADEP Managing Partner, Mr. Muneef O. Tarmoom stated that, "primary industry research shows that approximately 24% of leading Islamic Banks' balance sheets are invested in cash or its equivalent - well in excess of conventional banks - often due to no other reason other than sparse availability of alternative liquidity management instruments".
He added, "having observed and researched this dilemma for over a year, Abu Dhabi Equity Partners made it its mission to come up with asset backed liquidity management solutions that would lessen low yielding excess cash, assist in improving asset liability matching particularly in the 0-3 month maturity space, and enhance banks overall risk adjusted return. This can be done whilst at the same time bringing forth to the industry a "purer" physical soft commodity alternative to metal commodity based murabahas, commonly used in the market but often frowned upon by Sharia scholars. We believe that with ADEP's new 0-6 month suite of products, the market will have a secure, compelling alternative to cash that capitalizes on three underlying structural growth themes, namely emerging markets, soft commodities and the rise of Islamic finance assets."
Juan Fernando Valdivieso, ADEP's Managing Partner, commented that "in order for ADEP to develop liquid and innovative soft commodity based instruments, Brazil was the logical starting point. As a core growing BRIC country, it exports annually $65bn worth of agri-business production (being No.1 in sugar, coffee and orange juice; No. 2 in Soybean, beef and ethanol), plus it enjoys the highest real rates in G20 countries."
He added, "The ADEP team invested considerable time and resources understanding the Brazilian agri. industry value chain, and growing/pricing dynamics; reaching out to key players that included growers, traders, inspection, warehousing and logistical companies, whilst simultaneously studying local legal and tax regime. It's only after understanding and being comfortable with the agri-food landscape and its complete compliance with Sharia principles, did ADEP switch over to the financial structuring phase".
ADEP's soft commodity backed instruments have tenures of up-to 6 months with target returns of US$ LIBOR +400BP, with added safety of having title of underlying assets that are at a multiple of transaction market value, and world largest trading companies as prospective counterparties.
-Ends-
Muneef O. Tarmoom explained further, "ADEP believes in best-in-class architecture when developing its Sharia compliant products, focusing on structuring and origination whilst partnering with global leaders in law, Sharia certification, inspection & logistics, custody and admin.; and regional leaders in distribution & origination to the benefit of our clients."
AIFS - 11 London Conference Press release: 21st and 22nd Feb., 2012
1. Background:Abu Dhabi Equity Partners (ADEP), is a Cayman registered Emerging Markets Sharia-compliant liquidity management instrument specialist, with presence in Abu Dhabi, Miami, London and Sao Paulo www.ad-ep.com
2. ADEP's mission is twofold, namely;- Act as a bridge for capital flows from the Capital rich / Resource short Gulf state countries to Resource rich/Capital short emerging markets, with a focus on Brazil.
- Structure and bring socially responsible, competitive, Sharia-compliant funds to Latin America; starting with the asset based agricultural sector [inventory → production → infrastructure]
Abu Dhabi Equity Partners develops Islamic, Shariah-compliant financing instruments to finance working capital and operations of select commodity growers/producers in emerging markets.
Abu Dhabi Equity Partners has a strong network of agribusiness companies throughout South America, Eastern Europe and Asia, as well as a network of global institutional investors and large family offices.
Abu Dhabi Equity Partners has a very well established management team, with seasoned executives with significant experience in raising funds and operating companies with offices in Abu Dhabi, Brazil and the Cayman Islands.
Abu Dhabi Equity Partners has a strong supervisory Board, with distinguished executives from the banking, investment management, agribusiness and consulting sectors, and a Shariah Board composed of globally renowned Islamic scholars.
Juan Fernando Valdivieso is founder and managing partner of ADEP. Juan Fernando is an experienced executive who has launched various private equity, consulting and real estate entities. He has raised over $200 million dollars over the past 4 years for companies he has founded. He was also founder and Partner of Park Street Advisors, a boutique strategy consulting and private equity firm. Juan Fernando began his career as a Junior Partner of McKinsey & Company. He worked in 14 different offices in 9 countries, primarily in projects in financial services, telecom and petroleum, with a special focus on strategy, business building and post-merger management. Juan Fernando holds a Masters of Business Administration from MIT Sloan School of Management. He also holds Bachelor of Arts degrees from Lafayette College, summa cum lauda, in Economics, Business and International Affairs. Juan Fernando was also awarded the Wall Street Journal Achievement Award in Economics, as one of the top Economics undergraduates in the United States. He holds Board positions in various funds and corporations.
Muneef O. Tarmoom is founder and managing partner of ADEP. Muneef is a senior financial and management consulting advisor to Governments and leading corporations. Muneef was formerly CEO of a global Sovereign Wealth Fund, with assets in excess of US$ 4 billion, focused on global private equity and alternative investments. Prior to that, Muneef was a senior executive at the Abu Dhabi Investment Authority (ADIA) heading ADIA's European Asset Management team, one of the largest in the world; he also was a member of ADIA's global asset allocation and private equity working committees. Previously, Muneef consulted at a UK Oil major. Muneef holds an MBA in Finance from University of Strathclyde (UK), as well as a BA in Business Studies with Honors, obtaining "First Class" degree from University of Middlesex (UK). Muneef is a Qualified Professional Member of IIMR (Institute of Investment Management and Research, London). Muneef has held Board positions in various global funds and corporations.
5. Contact details
Americas: ci@adep.com
Europe, MidEast/Africa, Asia: ad@ad-ep.com
© Press Release 2012
