Gulf Capital ties up with CS Securities

Abu Dhabi: Gulf Capital, the regional private equity investment firm, announced on Monday a strategic alliance with Credit Suisse's (CS) alternative asset management arm.

The agreement entails the Swiss bank's commitment to an unspecified yet significant amount of investment capital to the alliance.

"Our policy does not allow for disclosing the sums we are planning to allocate, but there are many other aspects to this alliance, as we seek to benefit from Gulf Capital as an expert in the region," Charles P. Pieper, vice chairman for alternative investments at CS Securities (USA).

The agreement allows access for Gulf Capital to Credit Suisse's research resources, and is set as a platform where Gulf Capital is to find potential opportunities and provide for the necessary due-diligence based on the company's successful ventures in the region.

Investment committee

"There will be two members from Credit Suisse sitting on our investment committee, the first is Pieper, and the second is Collin Taylor, head of DLG Merchant Banking, Europe," said Karim Al Solh, Gulf Capital's chief executive officer.

Credit Suisse is one of the world's largest alternative asset managers with $155 billion in managed assets, the group has also strong rankings in the fields of private banking and investment banking activities.

"What we are looking for is international diversification, reacting to our clients' requirements, as we only have $7 billion out of the $150 billion worth of assets under management, while the remainder is third party capital who are very bullish on emerging markets," Pieper said, denying that the move comes in reaction to the subprime mortgage crisis in the US.

"Negotiations with Gulf Capital started since about two years, within the context of a diversification plan that extends to China and other Asian countries, as well as Latin America and the Middle East," he explained.

Credit Suisse has about 200 employees in the UAE, mostly in the private banking and investment banking segments, and by focusing on alternative asset management the bank seeks to benefit from the robust economic growth in the region.