DMHI invests with the top tier global and private equity fund managers in Saudi Arabia, Egypt Lebanon & Europe, with established track records; buy-out strategies. This is depending on guidance from the Investment Committee and allocation opportunities within the portfolio. The private equity investments cover most industries/sectors and the rationale for investing in this asset class is driven by the desire to improve the risk/reward composition of the portfolio by generating a higher absolute return along with portfolio diversification.
The Group understands from the onset what private equity as an asset class entails in terms of longevity of the investment horizon and the impact of the J-curve on cash flows. The private equity team of the Group conducts a thorough due diligence prior to presenting the opportunity to the Investment Committee. The Investment Committee of the Group continues to be mindful of ensuring that the mix of private equity investments, vintage years and underlying diversification works to the Groups advantage.
The Group also works closely with the General Partners to identify co-investment opportunities as well.
Equity Capital Market
DMHI has direct stakes in Saudi Arabian, MENA, European, Asian and North American companies where their nominated representatives add value on the Board and provide strategic vision, expertise and offer their peer-network to the benefit of the company.
By taking anywhere between significant minority stakes and majority control in operating companies, the Group works with the managements to provide not just strategic direction but also helps on operational matters such as facilitating financial leverage. The aim remains to be an intelligent partner that provides the means and abilities to transform the business top and bottom line, introduce it to newer markets and segments while providing intellectual support at executive, investment, compensation and audit committees level.
In addition to the more active direct investment, the group also looks at the relatively passive, non-controlling investment deals as well via co-investment opportunities. The Group is able to attract the most prized co-investment opportunities due to their relationships with General Partners of PE funds who value the Groups sophistication, association and expertise.
Real Estate Funds
DMHI has a substantial exposure to local and international real estate, through direct ownership as well as via private equity funds. The portfolio is a healthy mix of high-yield income generating core real estate as well as prime properties and land bank with a strong potential for capital appreciation. The aim remains to ensure relatively consistent total returns that are a hybrid of income and capital growth.
The Group actively monitors its real estate portfolio to ensure that offices, retail, industrial and leased residential sectors etc., are balanced out within the portfolio, in line with trends and projections. The continued focus on the breadth of real estate universe for relative value, diverse exposure and quest for yield and capital appreciation means that the Group works hard to successfully identify and invest with the best managers in each real estate market segment.