Baghdad Regeneration

Asset Management

Fund management is at the core of our asset management services. We launched the Iraq Gate Fund in 2013, as the first of a series of Iraq dedicated funds investing across different asset classes. The fund is one of the few professionally managed vehicles offering entry into Iraq that benefit from a world class infrastructure and is managed by an FCA authorized entity. The Fund invests in equities listed on the Iraq Stock Exchange (ISX) with a small allocation to private and pre-listing opportunities. The Iraq Gate Fund draws on a winning formula of the following factors:

  • Seasoned management with solid experience in frontier markets
  • On the ground presence
  • Strong local knowledge and intelligence
  • Local access and network
  • In-house research capabilities

We follow a fundamental approach supported by on-the-ground research and analysis.

APPROACH
RESEARCH
  • Detailed assessment of the target company
  • Analysis of economic and political factors relevant to the potential profitability of the investment
  • Analysis of the economic sector, investment environment and competitive dynamics
  • Dedicated research team
FINANCIAL & MARKET ANALYSIS
  • Analysis of target investment’s historical performance and business plans
  • Assessment of company products, market competition and operations
  • Financial modelling and company valuation through different economic and sector scenarios
  • Assessment of present and future liquidity of the shares through analysis of daily traded volume over 24 months
MANAGEMENT ANALYSIS
  • Due diligence on the management team of the target investment
  • Due diligence on the backgrounds of the strategic shareholder of the target investment
  • Conducting meetings with company management and key personnel
  • Field visits to investee companies’ headquarters and operation sites
LEGAL & RISK ANALYSIS
  • Detailed research and analysis of Iraqi legal framework
  • Evaluation and implication of legal, regulatory and tax framework
  • Identification of risk factors
  • Means of overcoming or mitigating risk
METHODOLOGY
MICRO VIEW
MACRO VIEW
Financial Criteria
  • Recurring operational income with good and feasible growth potential
  • Strong asset base
  • Low to no indebtedness
Economic Proxies
  • Real GDP growth expectations of +10%
  • Large population with strong purchasing power
  • Stable currency and low inflation
Governance
  • Acceptable practice of corporate governance
  • Good accounting standards
  • Operational and financial transparency
Resource Base
  • Rich in natural resources aside from oil and gas
  • Quality raw materials
  • Cost advantage for mineral based industries
Shareholding
  • Strategic and sustainable shareholder base
  • Reputation and good standing of strategic shareholders
  • Arms length and transparent dealings with other group holdings
Infrastructure
  • Damaged infrastructure from over 30 years of conflict
  • Dated services
  • Demand for housing
Management
  • Competency and understanding of business and sector dynamics
  • Reputation and good standing
  • Local knowledge and network
Human Resources
  • Highly educated
  • Technically skilled labour force
Liquidity
  • Sufficient daily turnover
  • Potential of increasing future turnover
  • Ability to source blocs of shares directly from shareholders
Attractive Sectors
  • Resource based industries
  • Banking, telecoms and tourism
  • IT

We also offer tailored asset management services for institutional, corporate and family groups. We provide individual advice to suit investors’ risk and return criteria that is designed to cater to the different types of investors and asset classes.