Fund manager Threadneedle takes 2% stake in Shariah-compliant investment bank

Ameriprise subsidiary makes “strategic” investment in Gatehouse

UK-based asset manager Threadneedle Investments has acquired what’s been termed a “strategic” 2% stake in Gatehouse bank, the London-based investment bank specialising in Shariah-compliant products and services.

The £95.1bn (€134bn) fund firm – part of New York-listed asset management giant Ameriprise – has taken the stake in a bank which was founded in 2008 and which has real estate, treasury, wealth management and Shariah advisory decisions.

Gatehouse is backed by the Kuwait Investment Authority, whose Head of European Equity, Oday Al Ibrahim, is Gatehouse’s Vice Chairman. Gatehouse had income of £12.8m and net profit of £4m in 2013; it advises funds with approximately $1.5 billion of assets in the US and UK.

“Gatehouse’s combination of Shariah-compliant investment expertise, its track record and the breadth of its relationships across the GCC region and Southeast Asia are unrivalled,” said Ted Truscott, the head of Global Asset Management at Ameriprise who is also Threadneedle’s chairman.He added: “We are excited to make this investment into Gatehouse and look forward to exploring areas of mutual interest.”

“We look forward to exploring areas of mutual interest.”

Gatehouse’s Chairman Fahed Boodai said: “As we look for partners with whom we can grow our business, we hope that we will continue to attract interest and support of world-class institutions and investors such as Threadneedle.” Terms of the deal weren’t disclosed.

The move comes as emerging markets guru Mark Mobius, executive chairman of Templeton Emerging Markets Group, has spoken of his belief in the potential for Islamic finance. In a blog
posting, he said: “I am convinced that opportunities exist in Islamic, or Shariah-compliant, investment products to address the investment needs of the world’s 1.6bn Muslim citizens.”