QInvest Reorganizes After EFG-Hermes Deal Fails

QInvest LLC is reorganizing its business into investment banking, principal investments and asset management units five months after the Qatari investment bank’s failed merger attempt with EFG-Hermes Holding SAE.

The changes were made “to focus the business on its core product and service offers,” QInvest, a Doha-based Sharia-compliant investment bank, said today in an e-mailed release. The bank also said it will work more closely with its biggest shareholder, Qatar Islamic Bank, “to access its unique market presence and network as well as its strong balance sheet.”

A planned merger with Egyptian investment bank EFG-Hermes collapsed in May after the deal, which would have created the biggest Arab investment bank, didn’t get regulatory approval from Egyptian authorities. QInvest didn’t disclose which businesses would be discontinued or whether there would be job losses because of the changes announced today.

QInvest was founded in 2007 with authorization to raise $1 billion of capital. The bank, lead by former Goldman Sachs Group Inc. executive Tamim Hamad Al-Kawari, recently worked on Kingdom Holding Co.’s $400 million acquisition of a stake in 360Buy Ltd, Dar Al Arkan Real Estate Development Co’s $450 million Sukuk and Hassad Food Co’s acquisition of a majority stake in India-based Bush Foods Overseas Ltd.

QInvest also helped arrange Constellation Hotel Holdings acquisition of four French hotels for $950 million and the Turkish government’s recent $1.25 billion sovereign Sukuk.

Al-Kawari replaced Shahzad Shahbaz as chief executive officer in November. Franco Danesi, head of special situations at QInvest, left last month after five years with the bank, according to a bank official. QInvest appointed Michael Katounas as head of investment banking in April.

Before it's here, it's on the Bloomberg Terminal.