Kingdom Holding & PineBridge Establish a Joint Venture to Invest in Africa
Kingdom Holding Company (KHC), chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, and PineBridge Investments Middle East (“PBME”) a global multi-asset-class manager have signed a memorandum of understanding “MOU” on Monday 30th June 2014 to establish a joint venture platform (“JV”) to invest in direct private equity opportunities in Africa. The MOU was signed by both Dr. Adel Alsayed, KHC’s Executive Director for Private Equity and International Investments, and Mr. Talal Al Zain, Chief Executive Officer of PineBridge Investments Middle East. The signing ceremony was also attended by Ms. Heba Fatani, Senior Executive Manager, Corporate Communications Department, Mr. Fahad Bin Saad Bin Nafel, Executive Assistant to HRH the Chairman and Ms. Dina Kasrawi, Managing Director Global Marketing and Communications, PineBridge Investments Middle East.
The joint venture between KHC and PineBridge will invest in African companies, in response to rising investor demand for exposure to the continent’s fast growing economies. Key focus sectors include manufacturing, consumer driven sectors, infrastructure, financial services and other sectors.
Prince Alwaleed commented: “The investment in this platform is a continuation of KHC’s successful investment strategy in Africa that began in 2003, and reflects our confidence in achieving long-term returns for investors in this venture.”
Mr. Al Zain commented: “We have strong conviction that the African continent is going through positive socio-economic transformations. PineBridge has a long track record of direct investing in Africa since the 1990s, with extensive experience in investing in sectors including infrastructure, banking and consumer sectors. The firm has offices in South Africa, Kenya and Uganda, investing in equities, credit and private markets. ”
KHC and PineBridge are long-established in Africa and have extensive emerging and frontier markets experience. Over the 2003 to 2011 period, KHC and Zephyr Management (Zephyr) combined their efforts in execution of an African investment strategy. In 2011, KHC and Zephyr reached an agreement for the acquisition of Zephyr’s interest in KZAM and was subsequently renamed to Kingdom Africa Management (KAM). KHC is now the sole shareholder in KAM and continues to pursue an African investment strategy.
Founded in 1980, KHC is a publicly traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. KHC is one of the world’s most successful and diversified business organizations, highly respected in the field of investments and recognized as an elite player in the Arabian Gulf region, and internationally. The Company is recognized as one of the largest foreign investors in the United States. KHC’s portfolio has its major interests in investment categories ranging from luxury hotels management hotel companies (Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Mövenpick Hotels, Resorts AG and Swissotel) and real estate (Kingdom Tower and the projects in Jeddah is the “Highest Tower” under construction and Kingdom Riyadh mega project) to hotel real estate investments such as (The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel, Paris and other hotels). KHC also has investments in Petrochemical (Tasnee), Media and Publishing (News Corporation and Saudi Research and Marketing Group), as well as in Entertainment (Euro Disney S.C.A). In addition, Finance and Investment services (Citigroup), Social Media and Technology (Twitter and Jingdong). Moreover, the Company has investments in Education (Kingdom Schools), Health Care (Medical Services Projects Company) that owns Kingdom Hospitals, Aviation (NAS Saudi Arabia) and Agriculture (Kingdom Agricultural Development Company - KADCO Egypt). In addition to KHC’s investments in the emerging markets such as Africa.
PineBridge is a global asset manager with nearly 60 years of experience in emerging and developed markets, delivering innovative alpha-oriented strategies across asset allocation, equities, fixed income and alternatives. PineBridge manages approximately US $71.4 billion, as of 31 March 2014.
PineBridge Investments Middle East B.S.C (c) (PBME) is a member of the PineBridge Investments group. PBME is headquartered in Bahrain and regulated by the Central Bank of Bahrain as a Category 1 Investment Firm. PBME offers world-class investment management services, with a global perspective and a regional focus across four core areas: real estate, private equity, investment management, and global distribution.