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Abu Dhabi, UAE, 19 November 2007: The National Investor (TNI) yesterday announced consolidated gross revenue of AED 82.6 million and consolidated net profit of AED 30.8 million for the six months ending September 30, 2007.
Chairman Abdullah M. Mazrui said “results for the period show significant revenue contribution from our asset management, real estate, and principal investment activities”. The firm closed its mid-year results with a slowdown in its investment banking activities. On the other hand, shareholders’ equity increased by AED 113.1 million mainly due to net profit generated during the period and an increase in the revaluation reserve from gains on available-for-sale investments.
During the period, TNI’s Asset Management Division achieved significant growth fuelled by improvement witnessed in UAE and regional capital markets. Assets under management almost doubled, driven by capital gains realized across all investment funds and fund raising from new accounts. “The solid growth in asset management activity has resulted in an impressive 88% increase in revenue over the 12-month period of last year,” Mazrui added.
Meanwhile, TNI’s Real Estate Division focused mainly on existing developments. Major on-going activities, such as Al Mafraq Hotel redevelopment project and the two Capital Center towers construction project, witnessed significant strides. A hotel operator is in the process of being appointed for Al Mafraq Hotel and concept designs are now being finalized for all three real estate development projects.
CEO Orhan Osmansoy pointed out that the firm is well positioned to take advantage of existing opportunities in a bullish market despite fierce competition mainly in investment banking and asset management activities. He explained that TNI’s asset management now offers a multitude of offerings including management of regional funds, investment consultancy services and holistic investment solutions including fund of funds. The firm’s asset management funds, which have outperformed most of their peers in the region, have experienced a year-to-date trough to peak performance swing of 60% to 75%.
As far as investment banking activities are concerned, Osmansoy highlighted that efforts will be centered during the second half of the year on revenue optimization through the execution of existing mandates. On the other hand, TNI’s private equity has successfully closed the fund-raising of its flagship late stage third-party fund, the TNI Growth Capital Fund (GCF). The fund has already achieved two successful exits, and is off to a strong start in returns. It has a significant transaction pipeline and is expected to be fully invested by the end of calendar year 2008. “We have a strong foundation in place, and through continuous incremental efforts and prudent growth we are in the process of transforming TNI into a full-service regional firm among the leaders in the markets we serve,” Mazrui concluded.
About The National Investor:
The National Investor (TNI) is a privately owned regional investment and merchant banking group. The firm comprises seven strategic business units covering investment and merchant banking, private equity, asset management, real estate, investment research, principal investments and client advisory. In addition, the firm has an associate company, GNSC, which provides brokerage services as a registered member of the Abu Dhabi Securities Market (ADSM) and the Dubai Financial Market (DFM).