Samena to acquire 40% in Kleinwort bank

Company to establish a new global merchant banking operation to offer advisory services for corporates in Dubai

Samena Capital (Samena), an investment group focused on private equity and credit in the Subcontinent, Asia, Middle East and North Africa (Samena) region said yesterday that it will acquire a 40 per cent stake in Kleinwort Benson Bank (KBB).

“The acquisition is done through a mix of primary market and secondary market purchase of shares in Kleinwort Benson Bank. At the close of the deal Samena Capital will have close to 40 per cent of the diluted equity of KBB,” said Shirish Saraf, Vice-Chairman of Sameena Capital, told Gulf News in an interview.

In the initial acquisition, Sameena Capital will take a 31.2 per cent stake in KBB, while it has the option to increase its ownership to 39.9 per cent of the next three years following completion of the transaction.

Kleinwort Benson Bank is the London-based private banking and corporate advisory subsidiary of Kleinwort Benson, a leading merchant bank with principal activities in private banking, asset management and financial markets and corporate advisory.

Third pillar

Founded over 200 years ago and headquartered in London, Kleinwort Benson Bank provides private wealth, banking, fiduciary and corporate advisory services. KBBL ended 2014 with £3.4 billion in assets under management.

“The transaction brings together a group of high net worth, entrepreneurial shareholders from Europe and across the Samena markets their shared desire for a return to relationship-driven banking and access to differentiated investment opportunities,” said Saraf.

Sameena Capital with a strong group of share holder entrepreneurs have invested more than $750 million in portfolio companies across its target markets. The investment in KBBL creates a third pillar for Samena alongside its established private equity and credit businesses.

The transaction is expected to close by the third quarter of 2015, subject to closing conditions, including regulatory approval.

Following the closing of the deal, the shareholders also intend to establish a new global merchant banking operation under KBBL in Dubai to offer advisory services for corporate activity in the region.

“Our firmly-held view is that opportunity lies in the closer integration of established and developing markets and the ability to introduce clients to high-calibre, differentiated investments that are not available from more commoditised providers,” said Leonhard Fischer, CEO of BHF Kleinwort Benson Group.

Saraf said a fundamental change is underway in the global investment banking arena which was dominated by universal banking behemoths for the last two decades.

While the financial crisis exposed the vulnerabilities of this system, the rising regulatory demands across the world are paving the way for return to relationship-driven roots of merchant banking for new growth markets.

“Profound and permanent dislocation of financial institutions creates a pressing opportunity to return to the traditional, relationship-driven roots of merchant banking. Both Samena and Kleinwort Benson are responding to a clarion call from our investors to create a new type of partner to high net worth individuals and entrepreneurs in both their personal and corporate affairs,” said Saraf.

Investments $750m Sameena invested in portfolio firms across its markets.