Restructuring Assets in the Middle East
"Private Wealth Management was virtually unique in having the capability to understand and evaluate these highly complex assets."
When a prospective client from the Middle East approached Private Wealth Management seeking significant capital, the assets he offered as security were highly complex in nature.
The Situation - Assets difficult to evaluate
The prospective client was seeking a borrowing facility of around $20 million to meet venture capital calls and to fund further investments. As security he offered a portfolio of 28 individual third party hedge funds.
Our Advice - Regularize holdings and assign worth
Private Wealth Management was virtually unique in having the capability to understand and evaluate these highly complex assets. Our experts concentrated due diligence on seven of the largest funds, with an overall value of $53 million. We suggested that the hedge fund shares be transferred into Deutsche Bank’s nominee name, and custodized with us, so that the appropriate pledge might become valid and effective.
What Changed - Establishing a new relationship
Impressed at the financial understanding we had demonstrated and appreciative of the competitive interest margin we were prepared to offer, the prospect decided to accept our recommendation and became a client. We advanced a credit facility of some $26.5 million – more than was originally requested – regularizing the hedge fund shares as proposed.
Deutsche Bank has expert local Relationship Managers in more than eighty countries around the world.
The Outcome - The ability to do business
Private Wealth Management’s new client has the liquidity he sought – and has made fresh investments in some of Deutsche Bank’s own Hedge Fund offerings1. Private Wealth Management has demonstrated considerable expertise in assessing complex assets of this nature, and shown the flexibility and professionalism to meet client needs in challenging circumstances.
1. Such products will not suit every investor. See further details
