Global reports KWD11.3mn revenues, KWD4.7mn net profit in 9M 2018
Asset Management generated KWD7.3 million (USD23.9 million) revenues and the Asset Under Management (AUM) stood at KWD880 million (USD2.9 billion).
On the buy-side, the Private equity asset management team exited three portfolio companies and distributed around USD100 million to clients investing in Global Buyout Fund and GMFA and is currently working on further exits.
The real estate asset management team expanded and diversified its real estate holdings to include Western Europe by acquiring a property in the logistics industry. The team also completed the sale of the first property acquired as part of the UK National Commercial Real Estate Program in September 2015 and let to National Air Traffic Services (NATS), achieving total return of 23.1%, internal rate of return of 10.3% of which the income element represented 9.3% per annum.
Special situations asset management entered into a specialized asset management agreement with a regional group to manage a portfolio worth USD90mn.
MENA Asset Management continued to report competitive returns and its managed funds outperformed their respective benchmarks and have been amongst the top performing funds in their respective jurisdictions. The team received two recognitions by industry experts, “Best Kuwait Asset Manager” and “Best Saudi Equity Fund”. In addition, Global Al-Ma’amoun Fund was named best Kuwait equity fund over 5 and 10 years by Lipper Reuters and was amongst the best performing Kuwait equity fund during the nine-months of 2018 reporting 10.6% compared to 6.6% by the respective benchmark.
The Investment Banking team generated KWD0.44 million (USD1.5 million) revenues from three M&A mandates in the financial and industrial sectors. The team is currently working on several mandates and has an interesting pipeline of M&A and advisory mandates.
On the brokerage front, Global, through its brokerage arm First Brokerage Company (Oula Wasata), made focused efforts to grow its institutional brokerage business and is well equipped to benefit from the expected increase in liquidity following the inclusion of Kuwait Bourse in the FTSE Russell Emerging Markets index in September 2018. During the nine months period, Global generated KWD1 million (USD3.3 million) in revenues from the brokerage business line.
The Company’s continuous efforts to control and rationalize its cost base resulted in a decline of KWD1.8 million (USD5.9 million) or 22% in the operating cost base to KWD6.5 million (USD21.4 million).
On 22nd of September 2018, KAMCO Investment Company officially completed the purchase of 69.5% stake in Global, thus becoming the largest shareholder in the company. Following the acquisition, four new members joined the board of directors who named Faisal Sarkhou as Chairman.
The acquisition is in line with the strategic plan to create one of the largest and strongest players in the regional investment services sector namely asset management, investment banking and brokerage.
Faisal Mansour Sarkhou, Chairman of the board, commented: “We are proud with these financial results which reflect the team’s expertise and competencies and their efforts in implementing the client focused and performance driven fee-based business strategy. With close cooperation with the new strategic shareholder, we look forward for further successful achievements and continue reporting positive financial results in future.”
Sulaiman Mohammed Al-Rubaie, Chief Executive Officer, commented: “Despite significant challenges we have faced due to the volatile geopolitical markets and the activities leading to changes in the company’s shareholders’ structure, the nine months witnessed the successful completion of several transactions, winning a number of new mandates and reporting positive results.”
It is worth noting that the board of directors met yesterday and approved the financial results for the period ended 30 September 2018.
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