Global’s Chairman Faisal Mansour Sarkhou (Credit: Kamco)
Asset manager Kamco Investment Company (Kamco) has started a process to merge with another Kuwait-based firm, Global Investment House, making it one of the largest mergers in the country’s non-banking financial sector.
As per the deal, Kamco will be the merging entity and Global will be the merged entity. The new company’s total assets under administration and management will be around $13 billion across funds and segregated accounts. Its investment banking credentials total $12 billion across equity and debt capital markets, mergers and acquisitions and real estate, the company said.
The move to merge comes after Kamco acquired a majority stake in Global last year for an undisclosed sum. At that time, Kamco said it will improve its operational and financial profile to operate on a global scale. The investment firm added that the merger is a “natural progression” to its acquisition of Global.
Meanwhile Global has had to deal with dipping profits in 2017 but recovered last year to post a rise again.
The new combined entity will strengthen its presence in MENA markets such as Kuwait, Saudi Arabia, UAE, Egypt, Bahrain, Jordan and Turkey, according to Entisar Al-Suwaidi, Vice Chairman of Kamco.
“We consider this strategic decision to merge with Global to be a significant step towards transforming the regional asset management and investment banking scene. Our goal is to become the preferred choice for our stakeholders: clients; financiers; talent; regulators; counterparties; and service providers,” she said.
Global’s Chairman Faisal Mansour Sarkhou said that the merger aims to create the largest asset management and investment banking firm in Kuwait.
“We look forward to growing our operations, taking advantage of new opportunities in regional emerging capital markets, and tackling challenges more aggressively while achieving sustainable measurable results for our stakeholders,” he explained.
The asset management industry has traditionally remained robust thanks to the sizeable private wealth. A study by the Boston Consulting Group revealed that personal wealth in Kuwait grew 5% between 2016 and 2017. It is predicted to continue its growth at a compound annual growth rate of 5% to reach $260 billion in investible assets by 2022.