Kuwait-based fund manager Kamco Investment Company has completed the purchase of a majority stake in local competitor Global Investment House (GIH).
The deal gives Kamco a 21% share of the Kuwaiti market in terms of assets under management, equating to roughly $14 billion.
Kamco chief executive Faisal Sarkhou has proclaimed the purchase as “a major step forward towards our aim of becoming the top investment firm in the region” and a potential springboard for expansion across the Mena region.
The acquisition also caps a difficult period for GIH which was badly affected by the global financial crisis after using short-term loans to purchase real estate assets that fell sharply in value.
The company subsequently underwent two restructurings, the last of which was completed in 2013, yet has continued to perform poorly. Profits more than halved between 2014 and 2017 while revenu8e fell by 37% to $14.1 million.
©2018 funds global mena