By Dinesh Nair, Reuters
• QInvest to concentrate on three core lines - CEO
• Seeks to provide access to Qatar capital
• No urgent need to do acquisitions
• To work more closely with shareholder Qatar Islamic
Bank
• Streamlining discontinues some business lines
Qatar's QInvest will focus on three core business lines -
investment banking, asset management and investing its own
capital - while working more closely with top shareholder
Qatar Islamic Bank, the firm's chief executive said.
Tamim Al-Kawari took over last year after after working
with Goldman Sachs for five years, most recently as
Goldman's local managing director and chief executive for
Qatar.
"My experience at Goldman was invaluable and I have
brought that with me to QInvest. We are sticking to our
core competencies and continue to focus on providing
innovative Islamic finance solutions," the Qatari national
told Reuters at the firm's headquarters in Doha.
Al-Kawari said he had streamlined operations and reduced
QInvest's number of business lines - areas such as wealth
management and brokerage services have been
discontinued.
QInvest, which has around $750 million in capital, will
now focus on catering to companies that are seeking access
to capital in the Gulf state and within the region.
It will also advise Qatari entities deploying capital
abroad, and co-invest in long-term deals such as
management buy-outs and buy-ins, and leveraged buy-outs.
Qatar Islamic Bank owns a near 44 percent stake in
QInvest.
With its vast natural gas reserves, Qatar has made a mark
as one of the world's most sought-after investors,
deploying billions of dollars through its sovereign wealth
fund in companies such as Credit Suisse, Royal Dutch Shell
and Glencore.
PICKING UP
Investment banking business in the Gulf is gradually
picking up after several years of sluggish activity that
prompted several large global banks to cut their local
operations, and also left some local investment banks
struggling to stay afloat.
In April this year, Al-Kawari brought in Michael Katounas
to run QInvest's investment banking division; Katounas
came from Credit Suisse, where he was a director at the
bank's investment banking division in Dubai.
QInvest is keen to bridge the gap left by the large global
banks in advising big family-owned and state institutions
seeking to expand their investments, Katounas said.
In the past, the global banks often focused on the biggest
deals, but Katounas added: "If you are waiting for the
next $10-15 billion deal from the region, you will be
waiting for a long time. On the mid-sized deal space, you
have enough opportunities there to keep you busy."
QInvest was one of the advisors to the Turkish government
on its $1.25 billion Sukuk sale last week, along with HSBC
Holdings and Standard Chartered.
Among other deals, the bank was an advisor to Kingdom
Holding, the investment firm controlled by Saudi Prince Al
Waleed bin Talal, in its 1.5 billion Saudi riyal ($400
million) acquisition of a stake in Chinese online retailer
360Buy.
QInvest will continue to rely on organic growth for the
time being after a planned stake purchase in Egyptian
investment bank EFG Hermes faltered earlier this year,
Al-Kawari said.
"The EFG transaction did not happen for a number of
reasons but there is no urgent need for us to do
acquisitions, and our strategy going forward is based on
being a strong standalone business."
The bank may seek to raise some leverage in the future but
currently has no debt, the executive added.
On the asset management side, QInvest is working with
leading asset managers to develop and distribute global
funds in a sharia-compliant manner, Al-Kawari
said.
Editing by Andrew Torchia
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http://www.reuters.com/article/2013/10/09/qatar-qinvest-ceo-idUSL6N0HY2AM20131009