Abu Dhabi Investment Company sees spate of strategic mergers and aquisitions, hires senior banker

The company, originally created in 1977 to invest on behalf of the Abu Dhabi government, is now expanding its range of financial services, including offering investors funds focused on the Middle East and Africa and acting as an advisor for international money managers.

To extend its reach, ADIC has hired Alex Carré de Malberg as head of investment banking to lead its advisory business for M&A and capital-raising. With financial turmoil lifting the cost of capital and stalling investment projects across the world, he believes investors in the Middle East will come into play as assets are reshuffled.

"There are certain pockets of liquidity, particularly in Saudi Arabia and in the U.A.E., that are likely to perform an important role," Carré de Malberg said. "For example, they are well placed to take advantage of distressed situations in the MENA region, other emerging markets and even in Europe," he added.

"Opportunities are emerging when families and corporates reposition their portfolios. In times of crisis, you only keep parts of your business that fit your long term objectives, and you sell anything that is not synergistic."

ADIC, which has built strong relationships across the Middle East and North Africa over three decades, is well placed to give unbiased advice and financial valuation services to investors for strategic investments, M&A, private placements and restructuring.

Carré de Malberg, who worked for over a decade at independent family-owned investment bank Rothschild, said investors often need "a second, non-conflicted" opinion on cross-border situations in developed markets, alongside U.S. or European investment banks or lending banks.

ADIC would also selectively provide financial advice to companies and institutions in Europe, China or the United States with long-term development plans in the Middle East, and who share the same long-term view as Abu Dhabi's ruling family and the emirate's institutions.

"Cross-border M&A is an area where we can really give investors something valuable, and different -- completely unbiased investment advice," said ADIC Chief Executive Nazem Fawwaz Al Kudsi.

"The Middle East is a source of capital, but also full of investment opportunities, so we'll see some interesting transactions in the next few years."

M&A activity went relatively quiet in the last half of 2008 as the global economic crisis unfolded and credit dried up, but signs are emerging that companies, family offices and private equity firms are on the hunt for acquisitions as asset valuations have fallen.

For example, according to a recent survey by law firm Norton Rose of nearly 1,000 senior executives, half the companies in the Middle East and North Africa plan at least one M&A deal in 2009.

Carré de Malberg developed an intimate knowledge of the Middle East as he set up Rothschild's operations in the United Arab Emirates. He has advised family offices, companies and private equity firms on M&A and leveraged buy-outs, helped governments with privatization programmes, worked on initial public offerings and arranged pre-IPO financing.

The hiring of Carré de Malberg will build upon ADIC's previous experience of capital raising transactions such as the Dhs1.5bn initial public offering for Abu Dhabi developer ALDAR Properties.