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Acquisition of ERGO Portfoy establishes QInvest as a significant player in the Islamic asset management sector, with close to US$ 1 billion assets under management across its global platform
The new business will be named 'QInvest Portfoy' and offer investors world class products, platform and services
QInvest CEO, Mr. Al-Kawari: "this is an important milestone in our mission to maintain QInvest's position as a leading global Islamic Investment institution"
Istanbul/ Doha - QInvest L.L.C., "QInvest", Qatar's leading investment group and one of the world's most prominent Islamic financial institutions, announces today the acquisition of ERGO Portfoy, one of the largest and fastest growing asset management companies in Turkey. Following the completion of this acquisition, QInvest Asset Management will have assets under management close to US$ 1 billion.
Following the completion of this 100% acquisition, ERGO Portfoy has been rebranded as QInvest Portfoy and is a subsidiary of Qatar's QInvest. The senior management of QInvest Portfoy will remain with the firm and will be led by Mr. Murat Vanli, the General Manager of ERGO Portfoy, and will continue to operate from Istanbul. The company has been granted its license to operate by The Capital Markets Board of Turkey (CMB) and is licenced to offer portfolio management to both individual and institutional investors.
QInvest Portfoy is one of the leading asset management groups in Turkey with over 1.5 billion Turkish Liras in assets under management, providing pension and mutual fund and discretionary portfolio management services. It has generated strong performance in recent years, outperforming the peer group, and its unparalleled client servicing capabilities have helped it to become the largest Islamic asset management company in Turkey. QInvest Portfoy is expected to play a major role in attracting new investments into Turkey, delivering high value services to a larger client base. It will also benefit from the world-class capability that QInvest currently provides.
QInvest's Chief Executive Officer, Mr. Tamim Hamad Al-Kawari, said:
"The acquisition of ERGO Portfoy and the launch of QInvest Portfoy marks a very significant moment for QInvest. It is in line with our long-term strategy of developing our Asset Management division, as one of the three key business lines within QInvest, and it is an important milestone in our mission to maintain our position as a leading global Islamic Investment institution."
Dr. Ataf Ahmed, Managing Director and Head of Asset Management, said:
"The launch of QInvest Portfoy will accelerate our current growth strategy and position QInvest Asset Management as one of the leading global Islamic asset management groups. Within just three years QInvest Asset Management has grown its assets under management to just under US$ 1 billion and this expanded capability positions us even more strongly for future growth".
QInvest LLC already has a number of international offices and strategic partnerships in important financial centers. The launch of QInvest Portfoy will increase QInvest's commitment to the fast growing Turkish market and follows on from the establishment of QInvest's representative office in Turkey in 2011. Since 2011, QInvest LLC has been active in the Turkish market mainly focusing on external financing transactions. QInvest LLC acted as Joint Lead Manager and Bookrunner for milestone transactions such as the recent Sukuk issuance of the Republic of Turkey (US$ 1.25 bn), Türkiye Finans Senior Sukuk (US$500 mn), Albaraka Türk Senior Sukuk (US$350 mn) and Albaraka Türk Basel III-compliant Tier II Sukuk (US$250 mn). In addition to the financing activities, QInvest LLC is also active in M&A advisory where, in 2015, it acted as the sole advisor to one of its main clients in relation to the acquisition of 31% shareholding of Boyner Retail and Textile Investments.
Mr. Al-Kawari, added:
"We think that Turkey offers compelling investment opportunities and we have been building our brand and expertise in this market for some years. The acquisition of ERGO Portfoy, and launch of "QInvest Portfoy" widens and deepens the expertise which we can bring to the Turkish market and will also allow us to facilitate an increased flow of business between Turkey, the Gulf Cooperation Council (GCC) countries, and global markets."
Earlier in 2015, Ergo Portfoy set up an umbrella Islamic fund and launched a global Sukuk fund, branded as QInvest Sukuk Fonu, which is being advised by QInvest Asset Management. QInvest Sukuk Fonu is traded on TEFAS, the electronic fund platform in Turkey, and attracts both institutional and individual Turkish investors willing to have access to international Islamic fixed income instruments. With the acquisition, the umbrella fund will serve as a platform to introduce other Islamic funds with strategies, already employed by QInvest Asset Management in its international funds and contribute to the growth of the Islamic finance market in Turkey.
Dr. Ahmed, added:
"We believe that Turkey is and will continue to be an important hub in the Islamic Financial services market. We have set our sights to be one of the major players in every sector we are active in. The acquisition of Ergo Portfoy will be a milestone for us in Turkey and shows our continuing support to the market and industry."
"We have been very impressed by the team under the leadership of Mr. Vanli, and their record as the leading asset manager for pension funds. We are looking forward to working closely with the existing team on the ground and increasing the scope of our services in Turkey."
Mr. Murat Vanlı, General Manager of QInvest Portfoy, said:
"The combination of these two businesses will allow us to make the most of the support and additional resources that QInvest can provide. Our existing clients will continue to be serviced by the same team, but will now also benefit from the greater access that the combined business will provide. We are very pleased to be joining the QInvest group and to be contributing to its future growth and success."
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About QInvest LLC
QInvest is Qatar's leading investment bank with operations across the Middle East, Africa and Europe, and one of the most prominent Islamic financial institutions in the world. QInvest has built world class investment and advisory capabilities, with the highest standards of governance and transparency underpinning its client-focused approach. The firm's priority is to deliver high-value propositions, considered solutions and tangible results for its clients and shareholders.
The firm has offices in Doha, Riyadh and Istanbul, as well as affiliates in India and the UK. Its team of investment professionals is the largest in the MENA region and provides a blend of broad international experience, deep regional knowledge and unparalleled relationships in Qatar. This reach and range of skills uniquely position the firm to facilitate the flow of business between Qatar, the region and global markets, making it a key institution in Qatar's international investment plans.
QInvest's three business divisions are Asset Management, Investment Banking and Principal Investments. It has unrivalled expertise in structuring Islamic products and provides clients with Sharia'a compliant solutions quickly and competitively.
QInvest was licensed by the Qatar Financial Centre Authority in April 2007 and is authorised by the Qatar Financial Centre Regulatory Authority. QInvest's shareholders include Qatar Islamic Bank, other institutional investors, as well as high-net-worth individuals. The firm has authorized capital of US$ 1 billion and paid up capital of US$ 750 million.
For further information, please visit www.qinvest.com
About ERGO Asset Management Company
Established in the year 2000, ERGO Asset Management is part of ERGO Group Turkey, which is a subsidiary of ERGO International AG, under the Munich RE Group.
The Company is the largest and fastest growing Islamic asset manager in Turkey. Its total AUM, currently stands at over 1.3 billion Turkish Liras (450 Million US Dollars) which correspond to around a 1.3% market share in the total of Turkey's asset management industry. It is worth to note that the asset size of the Company has registered a CAGR of over 40% between the years 2010 and 2015, where the growth mostly stemmed from Islamic pension funds.
ERGO has a core investment team with deep experience and expertise in the local markets, and has been a stellar performer in pension fund space, where they managed to place some of the funds under their management at the top or among the top of their peer groups repeatedly since inception.
For enquiries:
Bassel Hanbali - Head of Marketing, Corporate Communications & Investor Relations
QInvest
Tel: +97466542099
Email: bassel.hanbali@qinvest.com
© Press Release 2016
