Global reports KWD 12.1 million revenues, KWD 3.5 million net profit in 9M 2017
Global Investment House, a regional asset management and investment banking firm headquartered in Kuwait, with offices in major capital markets in the MENA region, reported a net profit of KWD 3.5 million ($11.5 million) for the nine months ended 30 September 2017 compared to a net profit of KWD1.6 million ($5.2 million) in 9M 2016.
It also reported total revenues of KWD 12.1 million ($39.9 million), and fee and commission income of KWD 8 million ($26.3 million) representing 66 per cent of total revenues.
Its asset management business generated KWD 8.4 million ($27.8 million) revenues during the 9M 2017. At 30 September 2017, Asset under Management (AUM) stood at KWD 949 million ($3.1 billion). During the nine months, the Real Estate Asset Management team closed two acquisitions and placement in the United Kingdom involving equity raising of GBP 28 million. The company has closed a third transaction earlier this month which culminates the seventh real estate acquisition for Global in the past two and half years.
Global remains one of the largest private equity fund managers. This year, the team concluded one exit and is in the process to exit additional two companies by year end. Several funds managed by the Company outperformed their respective benchmarks and peers.
The Investment Banking team generated KWD 0.4 million ($ 1.4 million) revenues from three mandates, ranging from advisory to M&A mandates. The team is currently working on several regional mandates, some are expected to close this year or first quarter of 2018.
On the brokerage front, Global made focused efforts to grow the institutional brokerage business and take advantage of high double-digit increase in market turnover. During 9M 2017, Brokerage fee revenues increased by 28 per cent to KWD 1 million ($3.4 million).
The Company’s co-investments in its own funds and other principal investments generated KWD 2.85 million ($9.5 million) of realised gains, dividend income and fair valuation gains.
“The Company produced excellent financial results during the nine months of 2017, reporting a two-fold increase to the net profit. We have been reporting profits since Q1 2015, eleven consecutive quarters, thanks to the fee based business strategy and experienced & solid management team,” Hareb Al-Darmaki, Chairman of the Board of Directors, said. “I’m confident that today Global is one of the few investment companies in the MENA region that has a healthy capital structure with no external debt and sustainable performance which have grabbed the attention of several parties to show interest to acquire a controlling stake in the company.”