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Fund Placement

Greenstone concentrates on placing funds generally in the Middle East and North Africa region and specifically in the GCC countries: United Arab Emirates, Kingdom of Saudi Arabia, State of Kuwait, State of Qatar, Kingdom of Bahrain and Sultanate of Oman.

The company has a focused and experienced team of professionals who have deep relationships with over 1,700 investors in the region. Greenstone’s team has a proven track record with over $2.5 billion in placements.

  • Greenstone is selective in choosing its clients
  • Greenstone will not take on competing clients
  • Greenstone seeks sector and geographic differentiation in its client selection to provide its investors with diversified investment options
  • Greenstone conducts complete due diligence on its clients prior to engagement

Our Process

gseprocess
  • Pitch email sent to potential clients
  • Set up introductory call to understand client’s business strategy, structure, assets under management, etc.
  • NDA signed, if required
  • Access to Virtual Data Room or other documents such as financial summary, corporate presentations, etc.
  • In-house due diligence is conducted
  • Orientation package and Mandate is sent
  • Review all existing marketing material on the client
  • Prepare region-specific marketing materials
  • Organize formal investor meetings to identify interested investors
  • Prepare and organize a customized multi-country roadshow
  • Conduct two initial roadshows (four to six weeks apart) to cover the region
  • Each roadshow will cover a specialized list of investors that are pre-selected and pre-marketed for the placement
  • Length of a roadshow is four working days (Sunday through Wednesday or Monday through Thursday)
  • Assist and facilitate investor due diligence
  • Assist in negotiation of investment terms, as required
  • Finalization of soft commitments
  • Assist with final hard commitments
  • Act as local marketing agent for clients
  • Assist with investor relations
  • Arrange regular follow-up trips and investor briefings
  • As applicable, conduct regular roadshows for long-term fund raising

GCC Investors: A Changing Landscape

Sovereign Wealth Funds
SWFs have become increasingly internationally focused over the last 10 years. Their role in developing the regional asset management industry will remain limited. These organizations are often set up with a specific mandate to deliver returns for future generations, using proceeds from natural resources trade surpluses.

Social Insurance and Pension Funds
These organizations have been investors in the domestic markets/companies for many years. Internally they are reviewing their returns profile and reexamining asset allocation with a view to considering alternative asset investment opportunities. Examples include General Organization for Social Insurance in Saudi Arabia or the Abu Dhabi Retirement Pension & Benefits Fund in UAE.

Educational Endowments
This pool of capital is emerging and will increase meaningfully due to sociopolitical changes in the region. Examples include King Abdullah University of Science and Technology (KAUST) in Saudi Arabia, which announced an endowment of $10 billion, one of the largest in the world. It is currently difficult to accurately calculate how much this emerging pool of capital may have in reserves, but there are certainly a number of universities in the region that are worth exploring. The American University in Beirut, Sharjah and Cairo are examples.

Ultra High Net Worth Individuals and Family Offices
Ultra High Net Worth Individuals (“UHNWIs”) and Family Offices remain the largest and most important investor types in what is easily the wealthiest region in the world. With over 400,000 UHNWIs in the region (three quarters of the number in China as a whole), and estimated aggregate liquidity of $3 trillion (according to a 2015 study) funds cannot afford to ignore Family Offices and UHNWIs.

Institutional Investors
Institutions including central banks, commercial banks, insurance companies and other non-financial corporates are key sources of capital for regional funds.

Accredited Investors
Accredited Investors are a significant source of investments and liquidity in the GCC region. Their ability to participate across various asset classes will increase over time as GCC countries introduce regulatory provisions enabling access to foreign investment products. High income retail groups, mostly the local population, typically utilize wealth managers and private bankers to access international investments. That said, there is a vast reservoir of cash and deposits waiting to be tapped and can be targeted by the regional asset management industry today through fund structures.

GCC Investor Breakdown

GCC Investable Wealth ($ billion)

  • SWFs
  • UHNWIs
  • Institutions
  • Retail

GCC SWF Assets ($ billion)

  • UAE
  • KSA
  • Oman
  • Kuwait
  • Qatar

Market Potential

Greenstone Placements by Country: $2.5 billion

  • UAE
  • KSA
  • Oman
  • Kuwait
  • Qatar

NOTES:
(1) Through Q3 2016
(2) Includes founders' track record
(3) Figures in $ million

2017 Forecasted GDP for the GCC: $1.374 trillion

  • UAE
  • KSA
  • Oman
  • Kuwait
  • Qatar

NOTES:
(1) Source: IMF
(2) Figures in $ billion

2017 Forecast - Capital Raising Potential By Country

  • UAE
  • KSA
  • Oman
  • Kuwait
  • Qatar

NOTES:
(1) Based on Greenstone's estimates
(2) Figures in $ million

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