Allows for seamless investment of foreign funds into the largest remaining, untapped global economy
TEHRAN, January 25, 2016 - Griffon Capital, the Iran focused asset management and private equity group, today announced the launch of the Griffon Iran Flagship Fund, which aims to unlock value from Iran's public equity market and provide a well-regulated and transparent institutional grade platform through which foreign capital can seamlessly be invested in Iran.
The Fund, which is Cayman domiciled and managed by Griffon Asset Management, is an open-ended vehicle investing predominantly in the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB). Aimed to attract an estimated Euro 100 million by year end, the Fund is targeting UK, European and GCC HNWIs, family offices and institutional investors. The Fund looks to achieve long term capital growth and will seek risk adjusted returns on an absolute basis.
The Fund will apply a rigorous bottom up approach to each company investment and will run a relatively concentrated portfolio. The Fund will generally stay committed to its investments for the medium and longer term, and can take advantage of mispriced companies more opportunistically.
Homan Harandian, CEO of Griffon Capital said: "We're pleased to launch the Griffon Iran Flagship Fund. The lifting of sanctions on Iran has created an unprecedented opportunity for investors. The Iranian economy has strong fundamentals and is expected to grow at an average rate of 4-6% per annum over the next five years. Today, and despite economic isolation for over more than three decades, Iran has developed into one of the world's most diversified economies, with oil only accounting for roughly 10% of GDP. Other indicators also bode well for strong, steady growth, including a rising tax base set to reach approximately 35% of the Government's budget in the year ahead. This is a young, resilient and fast developing country and an attractive, long term investment proposition."
Griffon Capital's wholly owned local entity, Griffon Iran (Homa), is the Fund's Sub Advisor. The Griffon Iran Flagship Fund will be managed by veteran portfolio manager Mehdi Farivar alongside Hossein Salimi, who together have a combined track record of 40 years of local capital markets experience and have managed in excess of US$15 billion accounting for over 10% of the market's total capitalization. Heading Griffon's Asset Management team is Payam Malayeri, whose previous experience includes heading up and developing emerging market equity platforms and managing over a US$1 billion of long/short proprietary capital at top tier global firms including Goldman Sachs and Citi, among others.
Griffon's Head of Asset Management, Payam Malayeri, added: "We are seeing significant investor interest in Iran with this historic market opening. With over 300 actively traded listed companies, Iran provides investors the opportunity to enter a highly diverse stock market, which is set to even further diversify with the significant pipeline of IPOs and privatisations expected in the next two to three years. This, coupled with trough corporate earnings today and the opportunity for further multiple and earnings expansion provide a good entry point for investors and pave the way for Griffon to deliver strong, steady returns over the long term."
"Our focus will be to invest in companies we fully understand and whose management we know to be capable and have a sound track record", said Mehdi Farivar, the Fund's Manager. "In Iran, value and growth opportunities go hand-in-hand, and there will be several catalysts and long term powerful trends at play making this a very attractive market. In addition, the Iranian stock market will also likely provide a great, uncorrelated investment opportunity for global investors. As an early example, in the week since the lifting of sanctions, and during a period of depressed global markets and oil prices, the TSE has been up close to 8%, when compared to lows at the start of January 2016."
Griffon Iran (Homa) is fully licensed and regulated by Iran's Securities Exchange Organization (SEO). The Fund will be audited and administrated by top tier, internationally recognized service providers outside Iran and will maintain stringent compliance with remaining international sanctions.
Marketing of the Griffon Iran Flagship Fund to UK and European investors is set to commence with a roadshow in London on February 8, 2016 following the conclusion of regulatory filings.
About Griffon Capital
Griffon Capital is an Iran-focused asset management and private equity group established to unlock value from the country's public and private equity markets. Among Griffon's primary objectives is to allow institutional investors the ability to seamlessly access and maximise opportunities in Iran through purpose-built vehicles and investment products spanning traditional and alternative assets.
The Group's strength is rooted in a robust operating platform developed with the expressed aim of serving institutional investors. Our platform consists of a high calibre team with deep local market expertise and international financial pedigree blended at the board, management and execution levels. Griffon is also distinguished by unmatched local research and primary thinking and a governance culture defined by global best practices in risk management, compliance and reporting.
Griffon is backed by a group of strategic shareholders, which include European family offices and investment companies. Based in Tehran, Griffon is licensed and regulated by the Securities and Exchange Organization (SEO) of Iran.
For more information and to follow Griffon, please visit:
www.twitter.com/griffoncapital
www.linkedin.com/company/griffoncapital
For media inquiries please contact:
Laila Danesh
FinMark Communications
T: +44 770 333 0024
E: ldanesh@finmarkcoms.com
© Press Release 2016
