We will be in Singapore from 14-20 June and will be attending the Echelon 2011 event, which will be held on the 16 and 17 of June. In line with our previous event updates, we have asked the event managers to offer a discount to our group members. Register for your tickets on http://echelon.e27.sg/ using the promo code “apache”, and pay only SGD$120 instead of the regular price of SGD$250. Echelon 2011 is Southeast Asia’s biggest conference for technology startups. See the regin’s best new companies present their products live. Hear from distinguished global speakers like Derek Sivers (CD Baby), Jason Wishnow (TEDtalks), Richard White (Uservoice). Meet 1,000 of the region’s venture and angel investors, entrepreneurs, developers and regulators.

EmiratiX aims to facilitate more relevant partnerships between Emiratis and businesses based in the UAE, by offering invitation-only memberships to the finest Emirati professionals in the UAE and by introducing our members to the business community.

For more information about EmiratiX, please visit http://www.emiratix.com.

One of the most popular deals done by Symphony was when they acquired Parkway Holdings in 1999. Following Symphony’s acquisition of Parkway in 1999 for $100 million, Symphony gradually transformed the then Singapore-based real estate company into a healthcare play. It achieved this by divesting the non-healthcare assets to reduce debt and subsequently expanded the company’s healthcare business internationally. Parkway’s transformation into a pure healthcare business attracted investor interest, and enabled Symphony to sell Parkway in a block trade in 2008.

Symphony’s Investment Approach

Symphony’s approach is to pursue private equity-type deals that tap into its management team’s extensive experience with such transactions. In each case Symphony will endeavor to achieve a position of effective control in partnership with the management of the acquired business. Symphony’s geographic scope encompasses the entire Asia Pacific region with special focus on the following countries: India, China, Australia, Indonesia, Malaysia, Singapore, Taiwan, Thailand and the emerging markets of Vietnam and Sri Lanka.

In keeping with Symphony’s philosophy, the company will seek to make investments where it is the lead or sole investor and is well placed to influence all aspects of business and financial strategy. The criteria for evaluating investment opportunities include the following:

• Quality of management team and their track-record
• Competitive advantage in terms of product differentiation or brand recognition
• Size and scope of the addressable market
• Fit with Symphony’s focus on consumer-oriented businesses
• Degree of influence and control attainable whether in a public or private enterprise

Main Contact: Raj Rajkumar – Partner

Raj is a Partner based in Singapore. He is involved in evaluating and executing new transactions as well as serving on the boards of investee companies to provide operational support. Prior to joining the Symphony team in 1999, Raj was a member of GE’s Corporate Initiatives Group based in Hong Kong where he was responsible for Six Sigma initiatives across Asia. Raj has also worked with Symmetrix, a Boston-based management consulting firm and in line-management at Mitsubishi Electric Corporation in Japan and the United States.  Raj has a BSc in Electrical Engineering from the University of Kerala, India, an MS in Electrical Engineering from Virginia Tech and an MBA from the University of North Carolina at Chapel Hill.

Tel:     (65) 6536 6177
Email: raj@symphonyasia.com

Duke Street has a 20-year history of successful investment in the UK and France and over six generations of funds and more than €2 billion of committed capital in a range of 10-year funds. Founded in 1988 as Hambro European Ventures; bought out from Hambros in 1998 and changed name to Duke Street. The firm has offices in London and Paris, employing some 45 people, including 10 investment partners. It’s owner-managed with more than 30 of the partners and employees owning shares in the business; no individual holds more than 10%; the team committed €26 million to the latest fund (DS VI), which closed in 2007 at €963m.

Peter Taylor is Managing Partner of the firm, has been with Duke Street since 1996. A further 8 UK and French investment partners sit on the Investment Committee, supported by 10 investment executives. 8 Operating Partners, former CEOs, work exclusively with Duke Street in UK mid-market private equity – the 27-person team currently manage 11 companies with a combined turnover of €2.3 billion. Total number of investments in UK and France is 44 since 1994.

Duke Street concentrates their investments in four sectors: business services; consumer; healthcare and financial services.

Duke Street and the Consumer Sector

They have extensive experience of investing in the consumer sector, where they look to support companies with strong brands serving consumers across multiple channels. They are not afraid of complex deals, if they can see an opportunity to achieve swift growth through rapid roll-out of brands or consolidation. They have established a strong reputation in the gaming sector through their investment in companies such as Gala Bingo, Sporting Index and Leisure Link and continue to seek opportunities in this market. In the leisure sector they have invested successfully in both niche hotel operators and fitness and leisure businesses.

Two of their current investments – SandpiperCI and The Original Factory Shop – display their willingness to back retail management teams with ambitious growth plans, even at a time when the sector as a whole is experiencing tough trading. In addition to their investments in consumer service companies, they also have a wealth of experience of working with management teams manufacturing consumer goods, particularly food.

Through a series of swift acquisitions, they have turned Adelie into the number one in the food-to-go category serving the expanding chilled food sector. At Simple they backed an ambitious growth plan to grow the business to become the UK’s leading female skin care provider by volume, and no2 by value; overtaking companies such as Nivea, Olay and L’Oreal in the process.

Contact Duke Street here: http://bit.ly/dWHfQ9

Apposite Capital is an independent investment firm focused exclusively on Healthcare. The firm invests in private companies involved in Healthcare Services and Life Sciences on a primary basis, as well as acquiring and managing direct Healthcare assets in the secondary market.

Apposite Capital is run by Managing Partner David Porter, who is a senior professional in the private equity and  investment banking industry. He is also very involved in the UK healthcare industry, having served as a member of the UK government’s Health Reform Group looking at reforms to the provision of healthcare to NHS patients and was Chairman of the Audit Committee and Board Member of the UK BioIndustry Association for four years. More information about their team can be found here: http://bit.ly/dRg8HR.

Apposite’s Investment Strategy
Apposite seeks to invest in the best opportunities in emerging healthcare companies. They are looking for:

• businesses with rapid growth potential
• the next market leaders regardless of the company stage
• companies that have seasoned management with a strategic vision

They believe management excellence makes the difference between success and failure for any business. They believe that only companies committed to quality will succeed beyond the short term. It is this combination that they look for in any investment they make.

Apposite’s Investment Criteria

• invests across all stages of corporate life cycle, from venture to emerging company buyouts
• They intend to invest as a lead investor and they take a seat on the Board of the companies they invest in

Life Sciences investments

• In Life Sciences, they may invest anywhere in the world but have a particular focus on the US and Europe
• While they are able to invest in any sector of Life Sciences, their emphasis is on biotechnology companies developing new therapeutics and novel technologies applicable to therapeutic products.

Healthcare Services investments

• In Healthcare Services, the UK is their main market of interest, where they seek to support companies and entrepreneurs looking to introduce innovation and global best practice for the benefit of patients, service users and healthcare payers
• They principally invest in business models developing high quality specialist services, and are active in all areas of healthcare from acute medicine through to social care

Contact details for Apposite Capital, the global healthcare investor http://bit.ly/f27UMQ.

On our company blog, we will be sharing with you some deals that we come across that we find interesting, whether we are working on them or not. We will also share information about investors with you in various industries. We hope you find this useful and interesting. Feel free to contact us if you have any feedback – we’d like to hear from you.

• Masharie (Dubai) has announced the acquisition of 51% stake in Technical Rubber (Saudi Arabia)
• BTG Pactual (Brazil) has announced the signing of an agreement with  international investors including Abu Dhabi Investment Council to invest $1.8 billion for 18 percent of the firm
• Nexus Capital (Abu Dhabi) has invested $100 million in the IPO of Chongqing Rural Commercial Bank ( China)
• Kuwait Finance House (Kuwait) has invested $20 million in China Sewage Plant from its $100 million Al-Fayez Fund for Private Property
• KCIC (Kuwait)  has acquired  Atlantic Gulf & Pacific (Philippines) for $40 million
• Qatarlyst (Doha) has announced that it has acquired RI3K (London)
• QInvest (Qatar) has acquired a stake in FIITJEE Limited (India)
• Investcorp (Bahrain ) has invested $68 million in FleetMatics (USA)
• Abraaj Capital (Dubai) announced plans to create Saudi investment platform with $547m capital
• Acumen Beltone fund to invest LE 1 bln in real estate
• Dubai International Capital to Sell Kef Holding, Hotel, FT Says
• Emirates NBD Bank starts an Art Investment Fund, partnering with the Fine Art Fund Group
• Investcorp (Bahrain) buys Princeton Forrestal Village for $55 Million
• Mubadala GE commits $2 billion for financing
• NBK Capital completed an investment in Arabian Establishment for Educational Development (Newton Schools), an education company based in Qatar

If you spot any mistakes in this post please drop us an email: info@apacheadvisors.com. If there was a deal we missed, please also feel free to send us more information and we will be happy to include that in this list.

Investment Focus

Asset management businesses need to define and present their investment offerings carefully. They need to understand their own core competence(s) and their client(s) requirements in deciding what the fund offering should look like. Examples of the types of investment focus to be considered include:

• Equity – Long funds (global, regional, single market/large, mid, small-cap/value, growth, blend)
• Fixed Income – Long funds (global, regional, single market)
• Hedge funds (global, regional, single market/multi-strategy, single-strategy)
• Sector funds
• Money Market funds
• Private Equity funds
• Managed funds

Apache Advisors specializes in helping clients define their focus to ensure that a sensible product rage is developed to meet the strategic goals of the business and investors requirements.

Product Domicile

The choice of domicile for a fund can be very important particularly when considering the investment objectives and policy to be followed by a fund and the way in which investment restrictions may beapplied. Certain domiciles are favoured by promotors and investment mangers offering retail funds. Others are more relevant for fund promoters and investment managers offering alternative investment products.

Should fund promotors or managers seek to list their funds on a recognised stock exchange, the choice of domicile again becomes important. Regulators in the different domiciles also have different attitudes to the provenance of the fund promotor and investment manager. Product structurers are faced with a varity of choices when deciding where to domicile an investment fund.

When considering the launch of a fund, Clients are recommended to seek advice from Apache Advisors about the appropriate choice of domicile for their funds. Popular locations include Luxembourg, Dublin, Bermuda, the Cayman Islands, Jersey, Guernsey, the Isle of Man, the British Virgin Islands and Dubai.

Luxembourg – The controlling regulator for businesses and funds is the Banque Centrale du Luxembourg.  For further information, go to www.cssf.lu

Dublin – The controlling regulator for businesses and funds is the  Financial Regulator. The Financial Regulator is responsible, inter alia, for the regulation of MiFID investment firms authorised in Ireland. Collective investment schemes authorised by the Financial Regulator include UCIT and non-UCIT funds. For further information, go to www.financialregulator.ie

Jersey  – The controlling regulator for businesses and funds is the Jersey Financial Services Commission. L egislation governing funds is defined in the Collective Investment Funds (Jersey) Law 1988 as amended by various Orders. For further information, go to www.jerseyfsc.org

Guernsey  – The controlling regulator for businesses and funds is the Guernsey Financial Services Commission.  The main legislation for companies engaged in investment business is set out The Financial Services Commission(Bailliwick of Guernsey) Law 1987 as amended – consolidated version. There are several sets of rules and guidance notes covering the different types of collective investment schemes. For further information, go to www.gfsc.gg

Isle of Man – The controlling regulator for businesses and funds is the Isle of Man Financial Services Commission. The relevant legislation is theFinancial Services Act 2008 and the rules provide for a variety of collective investment scheme types. For futher information, go to www.gov.im/fsc/

Dubai The controlling regulator for businesses and funds is the Dubai Financial Services Authority. The legislation governing funds is set out in the Collective Investment Law, DIFC Law No1 of 2006 with ammendments. For further information, go to www.dfsa.ae

Bermuda – The controlling regulator for businesses and funds is the Bermuda Monetary Authority. The primary legislation for companies engaged in investment business is set out in the Investment Busisness Act 2003. Legislation governing funds is defined in the Investment Funds Act 2006. For further information, go to  www.bma.bm

Cayman Islands – The controlling regulator for businesses and funds is the Caman Islands Monetary Authority.  The Caman Islands is the most popular domicile choice for hedge fund promors. For further information go to www.cimoney.com.ky

British Virgin Islands (BVI)  – The controlling regulator for businesses and funds is the Cayman Islands Monetary egislation governing funds is defined in the Mutual Funds Act 1996, the Mutual Funds (Amendment) Act 1997, the BVI Mutual Funds (Restricted Public Funds) Regulations 2005 and the Segregated Portfolio Companies Regulations 2005. For further information, go to www.bvifsc.vg

Service Providers

The management process for an investment fund is a team effort and the promotor needs to take care in selecting partners to assist in this process.

Apache Advisors has extensive experience of dealing with service providers and can assist in matching its clients’ requirements with the appropriate service partners.

Product Features

Bespoke Solution for Clients

Many banks and asset management businesses recognize that they need to differentiate their client bases with a view to offering bespoke or tailor-made services to what are usually described as high net worth clients. This has lead to many investment businesses offering Discretionary Portfolio Management Services as they seek to develop or enhance their private wealth management offering.

A discretionary portfolio management arrangement is one in which the investment manager makes the buy-sell decisions on a client portfolio without referring to the client for every transaction. The manager, however, must operate within an agreed framework to achieve the client’s stated investment objectives. Such a service will involve the regular monitoring of investments, regular valuations and reports, nominee services and even tax reporting.

As with institutional investors, high net worth clients have investment management needs that are very different from those of the average investor. This means that they need a service solution of a completely different order. A key feature of such these services (using model portfolio or similar baskets of assets) is that they can be refined to reflect the requirements of groups of investors or even individual investors.

Wrappers

When we look at the way we live our lives there are actually very small changes that we can make to improve our energy efficiency. Many people assume that it is only large and expensive changes that make all the difference. However even just changing the light bulbs in your home to energy saving bulbs can make a big difference. When you count up the amount of light bulbs in your home it makes sense that changing these to energy saving bulbs can help energy efficiency. These bulbs often last longer than normal bulbs too, so it becomes a win-win situation.

Of course, there are larger things you can do to improve your energy efficiency. For example, solar power is on the increase and more people are becoming aware of this environmentally friendly way to generate power. It is often assumed that it is only very hot and sunny places that can benefit from this way of making electricity however this is not true. There are also different solar power systems that you can buy which can make a big difference. Do not be put off by the initial cost of investing in a system like this because in the long run it will save you money on your electricity bills.

Saving money is a great motivation for changing our lives to be more energy efficient. However it is important to bear in mind that there are other reasons for this too. We need to take care of the world so that it is safe for future generations and being aware of our actions and the effect that they have on the environment is one of the best ways to do this.

Thankfully there are lots of resources online that we can refer to which can help us to become more energy efficient. Sometimes these are big changes that we can make and sometimes they are smaller tweaks we can make to the way we live our life which can make all the difference. What is important to remember is that whatever change you make, however small will have a positive effect on both the environment and your utility bill costs. So as much as a small change may feel insignificant remember that it isn’t and if everyone made these small changes that you have then it would add up to some massive changes which right now is just what the world needs.

If you have any comments on this article or wish to share your thoughts, please feel free to contact us.

What the DFSA looks for in an application

• Legal Status: A firm must be a body corporate or partnership. It can be formed in the DIFC, or a firm can establish a branch of a legal entity based in another jurisdiction. In the latter instance, the DFSA would expect the outside jurisdiction to have internationally compliant regulatory and legal standards.
• Location of Offices: A firm must carry on its activities from a place of business in the DIFC.
• Ownership and Group Structure: The DFSA seeks to establish that it will be able to effectively supervise the firm. Therefore they need to be made aware of any close links (eg parent, subsidiary, sister company) which could hinder effective ongoing supervision.
• Adequate Resources: A firm must have adequate resources to carry out the proposed financial services including financial resources and adequate systems and controls. A firm must have an internal audit function.
• Senior Management: A firm must appoint a Senior Executive Officer, a Compliance Officer, an Anti-Money Laundering Reporting Officer and a
• Finance Officer: The first three positions require the individuals responsible to be resident in the UAE. As part of the DFSA’s process, they will evaluate the competence and integrity of the proposed senior management team.

How to prepare to apply

• Decide what type of business you want to carry out and check which financial services you will need to apply for.
• Determine who will be part of the senior management and who will be in the mandatory positions. Prepare to complete the necessary individual application forms.
• Develop a comprehensive regulatory business plan that sets out your proposed activities, 3-year financial projections and budget, resources such as human, systems and financial.
• Familiarise yourself with the applicable rules from the DFSA Rulebook and be prepared to show how you will comply with those rules. This will include providing a compliance manual, a compliance monitoring programme, and risk management policies.
• Determine your minimum regulatory capital requirements, with which you will need to comply at all times. This should be included in your 3-year financial projections.

Completing the application forms

It is vital that you supply all relevant information. Openness and honesty are essential. Should the DFSA need to examine your application more closely because of any disclosures you make, this will not necessarily count against you. However, deliberately withholding information or providing false or misleading information, will adversely impact the success of your application.

Authorisation timeline

If the application is complete and the application fee has been paid, the DFSA will process your application according to the following timeline:

• Within 2 business days of receipt of the application: A letter acknowledging receipt of the application is sent.
• Within 5 business days of receipt of the application: An initial review letter is sent. Dialogue between the DFSA and the applicant will start and continue as required to the final review.
• Within 50 business days of receipt of the application: The DFSA aims to complete a final review and recommendation. A successful application will result in the DFSA issuing you an in-principle letter which will allow you to complete the DIFC Registrar of Companies process.

Apache Advisors has advised many firms in seeking Authorisation from the DFSA. We have advised financial institutions such as:

• A Russian-focused hedge fund manager which was seeking authorisation from the DFSA in order to establish an investment management firm in the DIFC. This company is now operating out of the DIFC and performs fund management and fund marketing functions.
• A Gulf-focused hedge fund manager which was seeking authorisation from the DFSA in order to establish an investment management firm in the DIFC. This company is now operating out of the DIFC and performs fund management and fund marketing functions.
• A Turkish-based Islamic Bank which was seeking authorisation from the DFSA to provide Islamic Banking products and services to their clients from a subsidiary office in the DIFC.
• A Saudi-owned investment advisory outfit which was seeking authorisation from the DFSA to provide financial advisory services to their clients from their offices in the DIFC.
• A Bahraini-owned investment bank which was seeking authorisation from the DFSA to provide financial products and services to their clients from their offices in the DIFC.

If you have any questions about seeking authorisation from the DFSA, please feel free to contact us.