Tadhamon Capital announces US$ 2.3 million profit in its third year of operations
Tadhamon Capital has announced a net profit of US$2.3 million for its third year of operations for the year ended 31st December 2011 compared to US$ 6.5 million for 2010.
Total revenues for the year amounted to US$7.7 million (2010: 11.1 million), which include fee income of US$4.0 million (2010: US$ 5.3 million) from managing portfolios for clients, performance fees of US$ 2.4 million (2010: US$ 0.6 million), and upfront fees of US$ 0.4 million (2010: US$ 4.8 million) while profits from proprietary investments contributed US$0.9 million (2010: US$0.4 million). Total operating expenses for the year, amounted to US$5.4 million (2010: US$ 4.6 million).
Commenting on the results, the Company’s Chairman Abdulgabbar Hayel Saeed said: "Despite the political and economic challenges that were spreading across the region during the year 2011, we are pleased with our performance.
The company has maintained achieving profits due to its ability to source and exit superior investments for its clients who have vested their deep faith in our abilities." Mr. Saeed expressed his sincere gratitude to the company’s clients, the regulatory authorities in Bahrain, and to the company’s employees for their reliable commitment.
Tadhamon Capital’s vision is to become a leading financial institution that promotes Islamic finance on a global level by providing its investors with attractive, diversified and innovative Sharia’a compliant solutions.
Its principal business activities include arranging, structuring and managing new investment products across its main business lines which include; Private Equity, Real Estate, Treasury & Capital Markets and Wealth Management.
In the first three years, Tadhamon Capital invested in individual stand alone investments, especially in the social infrastructure sector in the UK, such as student accommodation, healthcare and schools.
The company also invested in a professional labour accommodation camp in Jubail, Saudi Arabia, which has been progressing and performing exceptionally. Additionally, Tadhamon Capital manages a Sukuk portfolio for its investors in the Middle East and an equity portfolio, mainly in GCC markets, investing in Saudi Arabia, Bahrain, Qatar and Oman, and is currently looking at developing a new commodities portfolio, dealing in precious metals.
Currently, the company is establishing a new private equity fund, focusing mainly in the food and retail sectors, funded by the shareholders plus other investors. In addition, the company has recently launched Tadhamon Aviation Equipment Fund, its first Sharia’a compliant aviation fund established in Bahrain, securing a five year operating lease agreement with Gulf Aviation Academy.
The company has also closed two transactions, The Coxlease Special Needs School in south of UK and Athena Hall student accommodation block in Ipswich, North London. A third transaction, student accommodation in Paris Gardens, in middle of London, is also being finalized. Moreover, the company is working on a green field waste to energy project in Colombo, Sri Lanka, which will be developed in six months.
Chief Executive Officer and Board Member Waleed Abdulla Rashdan announced that the company has a strong pipeline of attractive and well diversified investment solutions. He commented "We have a niche market in terms of raising money from investors as our parent and shareholders are from Yemen. Tadhamon Capital, being in Bahrain, acts as a conduit for investors, providing a financial structure and liquid investment opportunities not found in Yemen.
Our shareholders bring their expertise, reputation and geographical diversification, in various industries, from London to Malaysia and Indonesia, using their presence in doing investments in these countries and markets."
Mr. Rashdan explained the company’s main focus is to act as an asset and fund manager. He said that the company deals with high net worth individuals and institutions who understand the risk the company is taking because of their solid understanding of the market and extensive experience in real estate and private equity. He added "Being a Sharia’a compliant company, we have an added advantage that all our investments are backed by physical assets."
"We are optimistic about the future and are working on a five year business plan that will focus on the three business lines, mainly through funds, whilst continuing to be opportunistic in case of attractive individual transactions.
"We will also focus on the promotion of wealth management functions, providing a complete solution for high net worth individuals. "Funds and wealth management remains our main focus, while trying to enhance our investor base and expand into other GCC countries."