Citigroups Global Transaction Services business has been appointed by Gulfmena Alternative Investments, a specialist asset management company and hedge fund manager, to provide global custody services for their newly launched Gulfmena Arab Opportunities Fund.
Gulfmena launched its flagship fund, Gulfmena Arab Opportunities Fund Limited, in November 2009 and it is still in its soft launch period. The fund commenced trading on 20 December 2009 and has a weekly frequency allowing for weekly subscriptions and redemptions. It is domiciled in the Cayman Islands.
According to a statement from Gulfmena: In addition to the fund manager and our strategic partner, 4-5 investors have committed to invest in the fund and we are in discussions with 5 seed partners of which 2 are in advanced negotiations. We expect the seed partner negotiations to be concluded in the near future followed by the allocation of USD 30-50 million in seed money.
The mandate marks an important win for Citi in the region. January 2009 saw the launch of Citis direct custody and clearing operations in the UAE, opening services to all three UAE exchanges, Abu Dhabi Securities Exchange, Dubai Financial Markets and NASDAQ Dubai.
Haissam Arabi, Chief Executive Officer and Fund Manager, Gulfmena Alternative Investments Ltd, said, By choosing Citi, we are gaining access to their high calibre expertise, global footprint and local knowledge. Citi was able to provide us with a solution that was flexible and matched the needs of our company.
Citi has extensive experience in providing global custody services to asset managers. Commenting on the appointment, Richard Street, Head of Securities and Fund Services, Middle East, Citi, said, To have been appointed by Gulfmena Alternative Investments Ltd is a great endorsement of our Global Custody product and our ability to deliver our Investor Services capabilities with a local service touch.
We continue to expand our MENA franchise and implement our strategy to embed our Securities and Fund Services capabilities within the Region. The Middle East is an exceptional marketplace one demanding local solutions with global service standards.
Citi has identified the Middle East as a strategic area for the Global Transaction Services business and has set a goal of delivering market leading capabilities and practices locally from within the Middle East. This build out began with the launch of its direct custody and clearing operations to three UAE markets in January 2009, and its fund services to the Bahrain Regulated Funds announced in July 2008. Further to this, Citi launched its Issuer Services business in the Middle East in April 2009, providing on-shore agency and trust capabilities to clients in the Middle East.