INTERVIEW: Abu Dhabi Capital Management Sees Strong Returns In GCC Region

Tom Burroughes

18 March 2013

This publication recently met with Abu Dhabi Capital Management, an investment firm that, as its name suggests, stems from the Middle East. Its focus at the moment is on the Gulf Co-operation Council region. WealthBriefing met with Mustafa Kheriba, chief operating officer, and Jassim Alseddiqi, chief executive, to find out more about the firm, which was established in January 2011 by private investors based in Abu Dhabi.

What are the main investment vehicles of the firm ?

Private Equity Special Situations; Real Estate Special Situations; Qannas Investments Limited , and Managed Accounts.

How would you best describe the investment philosophy of ADCM?

We are an opportunistic investor. We seek to achieve above average return while protecting and limiting our downside.

What markets, in geographic terms, does the firm invest in?

The Middle East and North Africa and London, UK.

Approximately what is the size of assets under management?

$180 million.

Can you, in indicative terms, give a measure of the investment returns you have achieved for clients, such as in terms of internal rates of return?

We have achieved an average IRR of 70 per cent since inception.

What sort of end-investors do you have ?

Mostly institutions, but we do have around 25 per cent high net worth individuals.

Can you re-state your approach in terms of only raising funds once you have a pipeline of investments? Can you remind me of why you choose this approach?

The approach is to reduce cash drag and hence keep a healthy IRR.

How do you set fees?

Fees are different depending on the investment management structure that we have. For Qannas, the fee is composed of one-time founder shares and a performance fee. There are no annual management fees.

How do you see investment prospects going forward?

As a purveyor of niche and exclusive investment opportunities in the Middle East and North Africa region, and the only Special Situations experienced team in the GCC region, ADCM enjoys a healthy pipeline of opportunities exclusively sourced.

ADCM has a positive outlook for growth in the GCC region and sees ample opportunities to embark on lucrative investments. Our track record has proven our investment strategy thesis thus far and we are confident that moving forward our thesis will generate healthy returns to our investors.

Tells us a bit about yourselves

Jassim Alseddiqi was educated and trained as an engineer, and lectured electrical engineering in Abu Dhabi. He moved to the investment and finance industry eight years ago. He was previously CEO of Abu Dhabi Capital Group until 2011 when he formed ADCM.

In the case of Mustafa Kheriba, he was educated in the US and Canada, and is an investment management executive boasting more than 15 years of financial services and investment management experience. As of 2011, Kheriba is chief operating officer of Abu Dhabi Capital Management.