Janus Henderson said on 2 May it has entered into a strategic partnership with NBK Wealth, the wealth management arm of the National Bank of Kuwait Group, whereby NBK Wealth’s private investments team will join Janus Henderson as the firm’s new emerging markets private capital division.
The transaction is structured as an acquisition of NBK Capital Partners (NBKCP), a newly established entity in the Abu Dhabi Global Markets (ADGM) for advising and managing alternative investment funds, subject to regulatory approvals and other customary closing conditions.
The private investments team from NBK Wealth was established in 2006 and today is an alternative investments advisor across private credit and private equity strategies in emerging markets including the Middle East and North Africa.
The team has secured $1.1bn in capital commitments to date and built an impressive 18-year history of performance and growth.
They have advised on investments in 40 companies with 27 portfolio exits. The team were instrumental in developing the region’s first dedicated private credit fund 15 years ago, which returned 17% gross internal rate of return and ranked among the top performing mezzanine debt funds globally in its vintage year.
Their private credit strategy has attracted investment from some of the region’s largest sovereign wealth funds and consistently delivered positive returns on every investment since 2009, the statement continued.
Janus Henderson has a well-established history of investing in emerging markets, showcasing capabilities in emerging market equity and, more recently, enhancing its offerings with the addition of an emerging market debt team. As investors look across the global market for differentiated investment opportunities, emerging markets remain underpenetrated for private capital solutions and therefore presents a key strategic growth area.
It expects that partnering with NBK Wealth will provide Janus Henderson with the opportunity to tap into this rapidly expanding market where there is increasing appetite from both sovereigns and corporates.
In addition to enhancing its offering to its existing clients, the partnership is also expected to provide Janus Henderson with the access to engage with new clients in the Middle East, and globally, who want to actively invest in emerging markets, thereby expanding its footprint in the region.
Ali Dibadj, chief executive officer at Janus Henderson said: “Over our 90-year history we have continued to put client needs at the heart of everything we do. Acquiring a private investments capability means we can better serve clients who are increasingly seeking differentiated investments in private credit including evolving opportunities in emerging economies and positions us as pioneers in anticipating and embracing this long-term trend.
“As we continue to execute our strategic objectives – including diversifying where we have the right – to meet client needs and support the growth of our firm, we will keep exploring strategic partnerships to accomplish this.”
Faisal Al-Hamad, CEO of NBK Wealth, said: “Janus Henderson shares our core value of placing clients first and we look forward to embarking on this strategic partnership together. With Janus Henderson’s deep-rooted client relationships, broad suite of investment strategies and global capabilities we are confident that this partnership will deliver positive outcomes for our clients.”
Yaser Moustafa, director of NBK Capital Partners, said: “We are very excited to be joining forces with Janus Henderson to solidify our role as the premier destination for institutional capital investing in alternatives in emerging markets. We have a shared commitment to expand private markets solutions in this space.”
At the closing of transaction, NBKCP will become the emerging markets private capital arm within Janus Henderson. NBKCP will retain its investment independence and will receive strategic support from Janus Henderson as part of the relationship across the entire platform.
Yaser Moustafa will continue to lead the business and Sikander Ahmed will continue his role as Head of Middle East Private Credit, both working closely with Janus Henderson’s senior management team.
Janus Henderson plans to launch a number of emerging markets focused alternatives strategies in the second half of 2024.
The NBKCP team is expected to join Janus Henderson in Q2 2024 subject to regulatory approvals and other customary closing conditions.
