EFG Hermes to invest $21.5M in Frontier Investment

CAIRO – 18 July 2017: EFG Hermes Holding’s subsidiary in the United Arab Emirates entered into definitive agreements to invest $21.5 million in Frontier Investment Management Partners Ltd (FIM), a Tuesday statement said.

Hermes’ deal is integral to its strategy of growing the asset management business through adding vital expertise, scale and a more diversified product base that fits well within our frontier markets expansion strategy, EFG Hermes Group CEO Karim Awad said.

Awad added that the company believes that investors will keep seeking specialized active fund managers and through the investment in FIM, EFG Hermes has positioned itself as the manager of choice for those allocations.

FIM will join Egyptian Portfolio Management Group “EPMG”, Hermes Fund Management “HFM,” Vortex and Rx Healthcare as members of the EFG Hermes Asset Management businesses, while retaining its independence, brand name and autonomy in investing across regional and frontier capital markets, the statement read.

Following the investment, EFG Hermes will own 50 percent stake in FIM and will have $4.5 billion of public and private market AUMs.

“I am very excited to have EFG Hermes as my partner in FIM. As one of the MENA region’s most respected financial institutions, this will add significant institutional backing to FIM and a better reach to our investment universe via a strong regional footprint that has lately expanded to frontier markets,” FIM CEO Hedi Ben Mlouka said.

The statement revealed that the deal has already been approved by the Dubai Financial Supervisory Authority.