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QINVEST, Qatar's leading private investment group and one of the region’s most prominent Islamic financial institutions, today announced its end of year results for 2017. Revenues from all business lines amounted to QAR 368.6 million (US$ 101.3 million), resulting in operating profit of QAR 177.3 million (US$ 48.7 million) and net profit of QAR 65.9 million (US$ 18.1 million). The group’s global assets stood at QAR 4,459.8 million (US$ 1,225.2 million) as of 31 December 2017.
QINVEST’s prudent investment approach, stringent provisioning policy, and underleveraged balance sheet has provided stability amid regional uncertainties.
The group continues to maintain a healthy Capital Adequacy Ratio of 26% as per QFCRA Basel rules, as compared to the regulatory requirement of 10.5%. In addition, QINVEST has continued to enjoy a strong liquidity position of c. US$ 120 million as of December 2017. QINVEST has also taken the decision to early adopt IFRS 9 accounting standard, reducing future volatility from its reported results.
H.E. Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of QINVEST, said:
“In 2017, we were able to capitalize on relatively more favorable global market conditions. We remain prudent in our management of risk and have built up a strong liquidity position and an underleveraged balance sheet that has enabled us to invest in key global markets on an opportunistic basis. Looking ahead, we remain committed to our business strategy, which is based around making strategic investments that prioritize diversification and risk-adjusted returns and delivering value to clients and shareholders at a time when they are counting on us the most.”.
Tamim Hamad Al-Kawari, Chief Executive Officer of QINVEST, said:
“Over the past year, QINVEST has successfully structured new investment opportunities across a number of different asset classes, with a particular focus on the international real estate market, debt and equity investments, and funds. These opportunities were structured with our investors in mind as we understood early on that there was an unmet demand in the market for access to the US real estate market in a Sharia’a compliant manner. Our team was able to provide the market with a compelling avenue to access these markets.”
Al-Kawari added:
“We are starting 2018 with an active investment book and a healthy pipeline of deals and we will continue to invest in the business for the future, selectively investing across different sectors and markets where there are opportunities for growth. I’m confident that QINVEST’s successful track record will continue to provide investors with access to exciting international investment opportunities.”
Over the past year, QINVEST’s Asset Management division delivered strong performances across both local and global markets and maintained the Group’s leading position among its peer group. A number of funds have been rated by Morningstar, achieving the highest ratings of 4 and 5 stars. The Firm launched an income-generating Ijara fund, the QINVEST SQN Income fund, in the first quarter of 2017 in collaboration with SQN Capital Management, a leader within the global equipment leasing industry. The Sharia’a compliant closed-ended fund, provided a unique opportunity for investors to access income generating assets in developed markets. On the back of the strong demand from investors for the first fund, the Group launched another fund in the same series during Q4 2017, which was also oversubscribed. QINVEST will look to launch the third in the series of the Ijarah funds during 2018 to meet market demand. In Turkey, QINVEST Portfoy continued to deliver top quartile performance and has won a number of significant institutional mandates. Changes in pension legislation in Turkey and growing interest in Turkish equities from international investors will continue to support Asset Under Management growth.
The Investment Banking division completed several transactions and advisory mandates during 2017. These include acting as sole advisor to a consortium of investors on the acquisition of a US$ 1.12 billion stake in a leading regional financial institution. In the debt markets, QINVEST acted as joint lead manager and bookrunner on a number of Sukuk issuances, including Dar Al Arkan’s 5-year US$ 500 million senior Sukuk issuance, Ezdan Holding Group’s 5-year US$ 500 million senior Sukuk issuance, Al Baraka Group’s successful debut with a US$ 400 million perpetual additional tier I Sukuk issuance and QIB’s highly successful US$ 750 million Sukuk issuance. The team continues to see significant interest from Qatari institutional and private clients as investors look to re-adjust business portfolios in light of the current market environment.
The Real Estate business produced strong results despite abundant supply of capital targeting real estate. The business successfully invested c. US$ 100 million across transactions in credit and multifamily assets, value add mixed-use portfolios and development assets in Europe and the US. In parallel, the group achieved various exits in the year including the partial sale of an equity investment in Continental Europe, which is expected to return more than a 2x upon full exit and the exit of a mezzanine financing transaction backing a diversified portfolio of hotels across the US which produced an IRR of c. 15%.
On the Credit Investments front, QINVEST continued to seek opportunities for the group’s own capital, as well as shareholders and third-party client funds. The Credit Investments strategy is to deliver superior risk-adjusted returns with a focus on portfolio diversification, value maximizing rotation and liquidity optimization. During 2017, the team successfully exited US$ 75 million worth of international credit investments generating returns in the mid-teens and deployed US$ 92 million across several investments in different sectors, mostly in US Credit and emerging markets.
On the Private Equity front, the group continued to manage the existing portfolio of third party managed and own-managed investments across MENA, Europe and Asia. The portfolio delivered robust results, delivering value growth for shareholders and partial realizations on the back of positive macro environment. During 2017, the team also completed the process of taking one of the group’s strategic investments private and reposition it as a key specialized company in the UK market, alongside Atlas Merchant Capital LLC, and are in the process of implementing the company’s new strategy and business plan.
About QINVEST LLC
QINVEST is Qatar’s leading private investment group, with activities across the Middle East and Europe, and is one of the most prominent Islamic financial institutions in the region. QINVEST has built world class investment and advisory capabilities, with the highest standards of governance and transparency underpinning its client-focused approach. The bank’s priority is to deliver high-value propositions, considered solutions and tangible results for its clients and shareholders.
QINVEST’s three business divisions are Investment Banking, Asset Management, and Principal Investments, which focuses on real estate, credit and equity investments. It has unrivalled expertise in structuring Islamic products and provides clients with Sharia’a compliant solutions quickly and competitively.
The Group has offices in Doha and Istanbul, as well as affiliates in India and the UK. Its team of investment professionals provides a blend of broad international experience, deep regional knowledge and unparalleled relationships in Qatar. This reach and range of skills uniquely positions the firm to facilitate the flow of business between Qatar, the region and global markets, making it a key institution in Qatar’s international investment plans.
QINVEST was incorporated in April 2007. It is licensed by the Qatar Financial Centre Authority and is authorized by the Qatar Financial Centre Regulatory Authority. QINVEST’s shareholders include Qatar Islamic Bank and other institutional investors, as well as high-net-worth individuals. The bank has authorized capital of US$ 1 billion and paid up capital of US$ 705,357,142.
For further information, please visit www.qinvest.com
© Press Release 2018