Intending to leverage on QInvest’s ties with Qatar’s sovereign wealth funds, the Egyptian lender aims to develop its asset management unit by 50% on completion of the deal, as reported by the Reuters.
EFG Hermes managing director and head of asset management Kashif Siddiqui was quoted by Reuters as saying that the deal commenced in May and is expected to close this month.
Branded as EFG Hermes, in which QInvest will hold 60%, while remaining 40% stake will be controlled by EFG’s holding company, the new JV will be presided by Siddiqui as co-CEO.
With an initial $250m funding from QInvest, the expanded business plans to boost its assets under management from $3.4bn to nearly $5bn within the next few years.
The new company also plans to start brokerage and asset management operations, with a specialised focus on investment banking services across the Middle East and North Africa (MENA) region.
Established in 1984, EFG Hermes operates as investment bank in the Middle East and offers securities brokerage, asset management, investment banking, private equity, and research.
