Leveraging its 30-year track record of success operating across the Arab world, EFG Hermes has expanded its geographical footprint and diversified its product offering to bring a constantly evolving portfolio of products to clients in some of the world’s most rapidly growing markets in MENA, Sub-Saharan Africa, and Southeast Asia.
What We Do
EFG Hermes is a leading financial services provider across frontier emerging markets, offering a constantly evolving array of financial services to both institutional investors and retail clients. In 2018, the Firm continued its geographic expansion strategy, inaugurating new offices in Bangladesh and Nigeria.
EFG Hermes was founded as an Egyptian advisory firm in 1980, and through both organic growth and a series of strategic mergers the Firm expanded to become a full-fledged investment bank by 1996.
Since 2016 and via a lateral business strategy, EFG Hermes has transformed itself once again from a pure play investment bank operating across the MENA region into a leading financial services corporation with a more diverse product range, encompassing both traditional investment banking services as well as non-bank financial services, and a strong footprint in frontier emerging markets (FEM) across both Sub-Saharan Africa and Southeast Asia.
The Investment Bank
As the leading brokerage house in the region, EFG Hermes Securities Brokerage offers a unique range of products and services and an unparalleled coverage of over 250 jurisdictions across MENA and frontier emerging markets. Today, the division has on-the-ground presence in Egypt, Kuwait, the UAE, Saudi Arabia, Oman, Jordan, Pakistan, Kenya, Nigeria, Bangladesh, and offices in the UK and the US. EFG Hermes Securities Brokerage serves a diverse client base ranging from individual retail investors to some of the most prominent institutional investors and high-net-worth-individuals. The division’s exceptional portfolio of products and services is backed by our award-winning Research division, which provides clients with the most up-to-date and reliable market intelligence available, and our online multi-asset trading platform, which allows for seamless multi-market access from desktops, laptops and mobile phones.
In 2018, EFG Hermes Securities Brokerage continued to strengthen its market share in countries where it operates while simultaneously expanding its geographical footprint, with the division opening offices in both Nigeria and Bangladesh. As of year-end 2018, the division was ranked first for share of market execution on the Egyptian Stock Exchange (EGX), on both the Abu Dhabi and Dubai Exchanges (ADX and DFM), and the Kuwaiti Stock Exchange (KSE). The division is looking to expand its coverage further, with plans to leverage our award-winning emerging and frontier market research offerings and deploy new on-the-ground teams of talented brokers to cover equities in promising emerging markets beyond MENA.
EFG Hermes’ Investment Banking division is a leader in M&A advisory, equity capital market (ECM) executions, and debt capital market (DCM) capabilities. Throughout the years, it has continued to execute a steadily expanding stream of landmark transactions not only in the MENA region but throughout the firm’s ever-evolving footprint by leveraging unique deal-sourcing efforts and an ability manage and place multiple simultaneous transactions. The division has become the institution of choice for clients, driven by the team’s exceptional domestic and international execution capabilities in the M&A sphere, extensive experience in a broad range of industries, jurisdictions, and products and its ability to respond with market judgments and ingenuity to clients’ needs for capital. EFG Hermes’ Investment Banking built on an already extremely successful 2017 to report another record-breaking year, booking over USD 2.5 billion in transactions in 2018. During the year, the division managed to go beyond plain vanilla advisory work in its home market, strengthening its product offerings and expanding its execution capabilities across a wider geographical footprint despite a geopolitical climate in constant flux.
With over USD 2.1 billion in total assets under management (AUMs) regionally, and EGP 13 billion in the Egyptian market as of 31 December 2018, EFG Hermes Asset Management remains the MENA region’s largest asset manager with a product offering encompassing mutual funds and discretionary portfolios with both country-specific and regional mandates. Although the division already serves a diverse client base, with a special focus on long-term and institutional clients, it continues to work on capturing a wider network of clients as it expands along with the firm in terms of product offering and geographical reach. In 2018, the division received multiple awards for its successful and trend-setting work in the industry including Best Asset Manager in Egypt at EMEA Finance’s African Banking Awards, the Outstanding Performance in Asset Management Award at Business Today’s Top 100 Awards, and the Best Asset Management Solutions Award by The European.
EFG Hermes Private Equity leverages its group-wide accrued insight and distribution platform to manage funds which invest across a diverse spectrum of sectors ranging from clean energy through its innovative Vortex platform, to education, through its newly launched Egypt Education Fund. Over the years, the division has transformed itself from a private equity group raising money from across the region to invest predominantly in Egypt to a group raising money from around the world to invest throughout MENA and Europe. 2018 was a pivotal year for EFG Hermes Private Equity, as the division divested its share in a 998 MW operational wind power portfolio managed and co-owned by EDPR while also successfully completing the first close of the Egypt Education Fund, which will concentrate on Egypt’s promising K-12 private education sector. The division will now focus on reinvesting the proceeds from the sale of Vortex assets to seek out new opportunities in the renewable energy realm, with a focus on the US and Canada.
Covering more than 263 equities across 24 markets as at year-end 2018, EFG Hermes’ Research Division continues to lead the region in quality and breadth of coverage. EFG Hermes’ world-class team of analysts offers investors the broadest coverage of frontier emerging markets on the market and has both deepened and broadened its macroeconomic, industry, and equity coverage of markets in the MENA region and beyond. This year the division added equities in Georgia, Bangladesh, Rwanda, and Botswana to its coverage portfolio, while deepening its coverage of the MENA and FEM markets already under its purview, initiating coverage of new equities in Kuwait, Saudi Arabia, Kenya and Pakistan. In 2018, EFG Hermes Research also launched Egypt One, a new research product that delivers a once-daily package of valuable insights to the division’s clients. Research included in Egypt One is largely retail-oriented and complements the division’s previously communicated strategy to gear more of its products to retail investors.
The Non-Bank Financial Institution
EFG Hermes Leasing
EFG Hermes Leasing was launched in 2015 and provides comprehensive financial leasing solutions and value-added advisory that help corporations meet their business goals. By leveraging an extensive network of vendor partners and a deep understanding of all aspects of the industry from origination to its credit process, we serve corporations and SMEs in a variety of sectors including, but not limited to, turnkey solutions for building owners, construction, energy systems, industrial equipment, and waste management. The subsidiary has been able to address a gap in the market that has left smaller companies lacking access to viable credit facilities by creating a dedicated, comprehensible platform through which companies and entrepreneurs can explore tailored financing options best suited for their specific needs. In doing so, EFG Hermes Leasing quickly climbed the ranks to become one of Egypt’s largest players by market share of contracts booked (by asset size).
Founded in 2009 by a team of industry veterans, Tanmeyah Micro-enterprise Services is Egypt’s leading non-bank provider of microfinance solutions and one of the newest additions to EFG Hermes Finance, who acquired the company in 2016. Tanmeyah caters to owners of micro and very small businesses across Egypt who would otherwise lack access to financing from the traditional banking sector, providing a comprehensive suite of microfinance solutions helping its clients achieve social mobility and find a path out of poverty by giving them the capital they need to grow their businesses. Today, Tanmeyah’s nearly 4,000 employees serve more than 290,000 active borrowers out of the company’s 248 branch offices.
In 2017, EFG Hermes’ NBFI platform launched valU, an innovative fin-tech platform that allows customers to access a wide network of merchants, calculate and select customized installment programs, and instantly make purchases in stores once they have been registered and approved. valU also offers a variety of repayment options from in-app debit or credit card gateways to cash payments through Fawry, Massary, Aman, Bee and Sadad.
EFG Hermes Factoring
EFG Hermes Factoring was launched in 2018 and is the latest addition to EFG Hermes’ non-bank financial services product offering. EFG Hermes Factoring provides businesses access to more financing than through conventional bank borrowing, in turn helping businesses enhance their working capital, reinvest in their production process, pay suppliers promptly and improve their overall cash position through increased liquidity. Our highly experienced team of professionals assist businesses both domestically and globally helping them grow sustainably without diluting equity or incurring further debt, while also reducing exposure to risk.
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