Firms join forces to target ‘rising investor demand’ in Gulf

Out-Law News | 01 Jul 2014 | 11:09 am | 1 min. read

Dubai-based Greenstone Equity Partners said it has joined forces with Capital Dynamics in the Gulf Cooperation Council (GCC) region to “meet rising investor demand for global investment opportunities in private assets”.

Greenstone said it will bring Capital Dynamics' clean energy infrastructure and private equity platform to the region's sovereign wealth funds, institutional investors and family offices. The clean energy infrastructure platform includes a Sharia-compliant investment vehicle and a Sharia-compliant investment vehicle for the private equity programme is expected soon, the company said.

Greenstone said that with Capital Dynamics, it is able to address demand for global direct and secondary private equity and infrastructure products, “through a comprehensive investment platform” built on expertise gained by Capital Dynamics’ during its 20-year investment history.

Capital Dynamics chief executive officer Stefan Ammann said: “We understand the importance of trust and building long-term relationships within the region. We are delighted that Greenstone's group of world-class professionals will be the face of Capital Dynamics in the GCC countries, building on the commitment we have made to the region over the past few years.”

Greenstone is a Middle East and North Africa (MENA) investment and advisory firm. Capital Dynamics, which currently has $19 billion in assets under management and advisement, is an independent, global asset manager investing in private equity and clean energy infrastructure.

The GCC was established in 1981 by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates to enhance their economic and financial integration. According to the International Monetary Fund (IMF), the region is home to some of the largest and oldest sovereign wealth funds, with assets under management estimated to be between $600bn and $1 trillion as of the end of 2008, excluding more than $500bn in official reserves.

The Qatar Financial Centre Authority’s ‘MENA Asset Management Barometer’ survey (128-page / 6.84 MB PDF), published in April 2013, said Shariah-compliant products remain popular “across all strategies”, with managers expecting increased interest from local and international investors.

The survey said: “Other MENA countries are currently attempting to emulate aspects of the GCC’s recent success, with the creation of economic enterprise zones and the deployment of new financial regulation, particularly in the area of Sharia finance.”