QInvest, a Qatar-based private equity firm, has acquired Ergo Portfoy, an asset management firm in Turkey.
Portfoy is one of the leading asset management groups in Turkey with over 1.5 billion Turkish Liras in assets under management, providing pension and mutual fund and discretionary portfolio management services. Established in 2007 QInvest’s has paid up capital of $750 million with shareholders including Qatar Islamic Bank, institutional investors, as well as high-net-worth individuals. The amount of the deal is not disclosed.
QInvest is listed in the Directory of Venture Capital and Private Equity in the Middle East with the code LIP08.
More details follows
QInvest L.L.C., “QInvest”, Qatar's leading investment group and one of the world’s most prominent Islamic financial institutions, announces today the acquisition of ERGO Portfoy, one of the largest and fastest growing asset management companies in Turkey. Following the completion of this acquisition, QInvest Asset Management will have assets under management close to US$ 1 billion.
Following the completion of this 100% acquisition, ERGO Portfoy has been rebranded as QInvest Portfoy and is a subsidiary of Qatar’s QInvest. The senior management of QInvest Portfoy will remain with the firm and will be led by Mr. Murat Vanli, the General Manager of ERGO Portfoy, and will continue to operate from Istanbul. The company has been granted its license to operate by The Capital Markets Board of Turkey (CMB) and is licenced to offer portfolio management to both individual and institutional investors.
QInvest Portfoy is one of the leading asset management groups in Turkey with over 1.5 billion Turkish Liras in assets under management, providing pension and mutual fund and discretionary portfolio management services. It has generated strong performance in recent years, outperforming the peer group, and its unparalleled client servicing capabilities have helped it to become the largest Islamic asset management company in Turkey. QInvest Portfoy is expected to play a major role in attracting new investments into Turkey, delivering high value services to a larger client base. It will also benefit from the world-class capability that QInvest currently provides.
QInvest’s Chief Executive Officer, Mr. Tamim Hamad Al-Kawari, said:
“The acquisition of ERGO Portfoy and the launch of QInvest Portfoy marks a very significant moment for QInvest. It is in line with our long-term strategy of developing our Asset Management division, as one of the three key business lines within QInvest, and it is an important milestone in our mission to maintain our position as a leading global Islamic Investment institution.”
Dr. Ataf Ahmed, Managing Director and Head of Asset Management, said:
“The launch of QInvest Portfoy will accelerate our current growth strategy and position QInvest Asset Management as one of the leading global Islamic asset management groups. Within just three years QInvest Asset Management has grown its assets under management to just under US$ 1 billion and this expanded capability positions us even more strongly for future growth”.
QInvest LLC already has a number of international offices and strategic partnerships in important financial centers. The launch of QInvest Portfoy will increase QInvest’s commitment to the fast growing Turkish market and follows on from the establishment of QInvest’s representative office in Turkey in 2011. Since 2011, QInvest LLC has been active in the Turkish market mainly focusing on external financing transactions. QInvest LLC acted as Joint Lead Manager and Bookrunner for milestone transactions such as the recent Sukuk issuance of the Republic of Turkey (US$ 1.25 bn), Türkiye Finans Senior Sukuk (US$500 mn), Albaraka Türk Senior Sukuk (US$350 mn) and Albaraka Türk Basel III-compliant Tier II Sukuk (US$250 mn). In addition to the financing activities, QInvest LLC is also active in M&A advisory where, in 2015, it acted as the sole advisor to one of its main clients in relation to the acquisition of 31% shareholding of Boyner Retail and Textile Investments.
Mr. Al-Kawari, added:
“We think that Turkey offers compelling investment opportunities and we have been building our brand and expertise in this market for some years. The acquisition of ERGO Portfoy, and launch of “QInvest Portfoy” widens and deepens the expertise which we can bring to the Turkish market and will also allow us to facilitate an increased flow of business between Turkey, the Gulf Cooperation Council (GCC) countries, and global markets.”
Earlier in 2015, Ergo Portfoy set up an umbrella Islamic fund and launched a global Sukuk fund, branded as QInvest Sukuk Fonu, which is being advised by QInvest Asset Management. QInvest Sukuk Fonu is traded on TEFAS, the electronic fund platform in Turkey, and attracts both institutional and individual Turkish investors willing to have access to international Islamic fixed income instruments. With the acquisition, the umbrella fund will serve as a platform to introduce other Islamic funds with strategies, already employed by QInvest Asset Management in its international funds and contribute to the growth of the Islamic finance market in Turkey.
Dr. Ahmed, added:
“We believe that Turkey is and will continue to be an important hub in the Islamic Financial services market. We have set our sights to be one of the major players in every sector we are active in. The acquisition of Ergo Portfoy will be a milestone for us in Turkey and shows our continuing support to the market and industry.”
“We have been very impressed by the team under the leadership of Mr. Vanli, and their record as the leading asset manager for pension funds. We are looking forward to working closely with the existing team on the ground and increasing the scope of our services in Turkey.”
Mr. Murat Vanli, General Manager of QInvest Portfoy, said:
“The combination of these two businesses will allow us to make the most of the support and additional resources that QInvest can provide. Our existing clients will continue to be serviced by the same team, but will now also benefit from the greater access that the combined business will provide. We are very pleased to be joining the QInvest group and to be contributing to its future growth and success.”
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