BrazilKAMCO completes GIH purchase with integration support from A&M
Kuwaiti asset management company KAMCO has completed its majority purchase of Global Investment House, with Alvarez & Marsal serving as the integration advisor.
With upwards of $11 billion worth of assets under management and a current local market share of around 16 percent, the Kuwaiti-based investment agency KAMCO is one of the largest investment players in the Middle East. And now the company has grown bigger again, with regulatory approval granted for its purchase of a nearly 70 percent stake in regional competitor Global Investment House.
Established in 1988 as a division of Kuwait’s United Gulf Bank, (which retains a 77.83 percent share in the company), the majority purchase of Global Investment House ( which has ~$3.1 billion in AUM) will allow the firm to extend its regional presence beyond its current Kuwait and UAE markets to include Global’s established network in Saudi Arabia, Bahrain, Egypt, Jordan and Turkey – increasing its local market share to above 20 percent.
The purchase of precisely 396,426,434 shares in Global from Bahrain-based investment outfit NCH Ventures for a 69.528 percent controlling stake has seen KAMCO incorporate the recently struggling firm’s existing investment products and services, asset management business, and managed real estate, along with Global’s brokerage subsidiary and its international offices – with the purchase plan originally announced in May.
“Completing this transaction is a great milestone for us as it validates all our hard work over the past few months,” KAMCO CEO Faisal Mansour Sarkhou said of the closing. “We are pleased by the successful outcome and would like to thank our valued clients and stakeholders as this historic moment for KAMCO would not be possible without them. We also extend our gratitude and appreciation towards the collaborative efforts of all those who were involved in making this transaction a seamless and successful one.”
Alvarez & Marsal
Among the parties singled out for praise by Sarkhou was Alvarez & Marsal, originally brought in by KAMCO in June as integration advisor, with the CEO having previously commented on the seamless cooperation of all parties during the negotiation period and the firm having stated that Alvarez & Marsal was selected due to its “strong track record and global exposure in successfully concluding complex transactions.”
Commenting at the time, Sarkhou said; “We are confident in A&M’s capability to deliver the best outcome for this transaction. A&M’s experience and expertise in handling similar transactions throughout their years of operation further solidified our decision. With A&M’s support and the cooperation of Global’s team, we are keen to make this transition seamless for our valued clients and stakeholders. We also seek to make KAMCO a non-banking financial services powerhouse of the region.”
“We are delighted to be working on such a significant and complex transaction,” Saeeda Jaffar, Managing Director with Alvarez & Marsal, said in response. “Our experienced team of consultants and operators, combined with our operational heritage, will help realise the effective performance enhancements critical to unlocking value.” Jaffar has since tweeted; “Fantastic to see the company successfully thrive in just three weeks time since the #donedeal”.
Together with the Big Four and Bain & Company, Alvarez & Marsal was recently named among the top six firms for M&A work globally by independent analysts ALM Intelligence, with A&M noted for its particularly strong scores for transactions support and the ability to guide top management through complex deals.
