Middle East Investment Bank (The Bank)

Current Status:

Leading regional investment banking and asset management group. They have a successful fund management business with ambitious plans to market themselves more widely.

Funds Under Management:  In excess of $1 billion

Requirements:

• Change of Fund domicile: existing funds were located in various regional jurisdictions with patchy, uncertain regulation
• Broader international sales capability unhampered by existing Regulators’ uncooperative and restrictive approach.
• A “One Stop Shop” fund formation facility including Compliance, Regulatory and Legal, freeing-up executive time for capital raising and investment strategy formulation.
• Fund is required to invest into Equity markets across Middle East and North Africa (MENA) region requiring T+0 settlement, potentially, seven days a week.
• Hands on relationship with a close partner providing guidance and advice on distribution issues, such as reaching target markets and the fund’s suitability for platforms and leading insurance company wrappers.

Solution

KMG provided a Dedicated Mena Fund;

• Structured with particular emphasis upon ensuring that the dealing facilities were flexible enough to accommodate all markets within the MENA region.
• The fund can be marketed freely to The Bank’s target audience offering World Class regulation and administration.
• KMG researched and ensured that the fund could be distributed via platforms, “fund supermarkets” and insurance company wrappers.

The Benefits

• Bearing the prestigious LU ISIN prefix, their new fund demonstrates it offers the best in asset management and fund administration in Europe’s leading fund jurisdiction.
• The fund has global acceptance and ease of marketing across Middle East, Europe and beyond.
• The Bank now has an exclusive and powerful investment vehicle suitable for their whole target market and their selected distribution objectives.
• In addition to The Bank’s own distribution options, KMG was able to provide assistance on a comprehensive distribution strategy including PR, marketing and access to over 300,000 advisers Europe-wide and over 50 individual private bankers in Switzerland.

Conclusion

For a Middle East based investment business, gaining access to the pool of investors situated within Europe was a key element to their fund’s success. KMG were able to propose a robustly regulated fund vehicle that permitted acquisition of the requisite securities whilst also ensuring that key investors could be easily reached with a vehicle they were comfortable to invest into.