Dubai: Franklin Templeton Investments, one of the leading global asset managers, has acquired a 25 per cent equity stake in Algebra Capital, a local asset management company in the Middle East and North Africa region (Mena), the two companies announced in a joint press conference yesterday.

Both declined to disclose the value of the deal.

"We see tremendous opportunity to grow our business in the Mena region and I think Algebra's expertise... in the region will make it a solid strategic investment for our firm," said Harshendu Bindal, Franklin Templeton's UAE-based senior director for the Central and Eastern Europe, Middle East and Africa regions.

"I think what we can achieve through this tie-up is the ability to offer local asset management products to our clients, both institutional as well as retail clients, who are our distribution partners in the region."

Franklin Templeton manages $621 billion in assets and brings 60 years of investment experience.

Algebra Capital, operating out of Dubai International Financial Centre, will be able to leverage Franklin Templeton's private equity arm, Darby Overseas, in creating new products for the region.

According to Ziad Makkawi, chief executive of Algebra Capital, being committed to the development of the asset management industry in the region they found in Franklin Templeton a partner who shares many of the same vision and strategy.

"They are a global player that brings international best practices, global distribution capability and product development expertise and management that will help establish Algebra Capital as the leading asset management company in the region. Today it is the start of new relationship that will not only attract increased interest and capital from the region and also globally."

Makkawi added that they would soon announce the launch of its "first flagship equity fund". Algebra is looking at various asset classes that include listed equities, bond market, fixed income market and private equity.