Executive Summary

International Alliance Associates support firms in leveraging their value proposition throughout the Middle East, a highly liquid marketplace estimated at over four (4) trillion USD with a combined population of approximately 40 million. Client-driven requirements in the Middle East now center on performance and institutional pedigree, as well as strong, culturally-sensitive relationships. International Alliance Associates, Limited (IAA) has spent over twenty years successfully placing alternative investments and providing strategic and financial advice. IAA’s chairman and advisors have acquired the experience and knowledge of the culture, language and nuances needed to successfully conduct business in this region. As a result, IAA is uniquely positioned to support market entry and management in this opaque and fragmented environment by originating, developing and managing significant new investment and advisory mandates.

Further, IAA’s expertise and focus includes structuring strategic alignments throughout the Gulf Cooperation Council Countries (GCC) and raising significant investment capital for entities outside the region.

As the Middle Eastern investment market grows, so does the demand for tailored or structured products and advisory services including “ethical” or Sharia investments. The Sharia financial market is currently estimated to be approximately 1.8 trillion USD. As a dedicated representative in the Middle East, with an unparalleled network of strategic investment decision makers, IAA is positioned to identify and raise assets from proprietary accounts of treasury departments, financial entities, including local banks, investment authorities, sovereigns, family offices, insurance companies, pension funds and endowments through existing, trusted relationships. Many of these investment entities have over 1 trillion USD in AUM.

Based in New York, IAA maintains a physical presence in the GCC through its Riyadh office. This ‘foot on the ground’ enables IAA to better assess changes in the market, corporate cultures, constraints for risk management orientation, and to maintain the relationships required to seize new investment mandates with over 400 premier financial entities throughout the region. This provides IAA proprietary knowledge about new opportunities which can be seized for international clients from an emerging trend of Middle Eastern banks accepting an “open architecture” business model for investment in US, European and Chinese companies. This intelligence is gathered by IAA’s team and shared with clients, on an ongoing basis.

Expanding a firm into the GCC and / or obtaining investment capital from this wealthy, investment seeking region creates a unique opportunity to further build and diversify a company’s Brand and client base. IAA’s team has a deep understanding of the requirements of this market and provides ongoing guidance for leveraging client value propositions across all business sectors.

The five-to-ten year learning curve required to enter this region without having acquired the skills, knowledge and trusted relationships necessary to drive decision making in this opaque geopolitical environment, results in prohibitive cost and exposure. IAA’s people possess honed diplomatic skills, local country knowledge, and enviable relationships with rulers, governors, ministers and business leaders which greatly augment GCC market penetration, significantly accelerating market entry, branding and asset raising.

CORPORATE PROFILE

Founded in 1990, International Alliance Associates (IAA) is recognized as a leading, specialized placement agent and consulting firm. Collectively, IAA’s associates have over one hundred years of combined experience providing the strategic financial marketing and advisory services that are IAA’s forte.

As a premier, alternative asset placement agent, IAA is committed to providing clients with the competitive advantage of a leveraged practice and resources, including, but not limited to, long-term relationships with key decision-makers, and an unrivalled network of investors throughout the Middle East. IAA works with alternative investment managers who have stellar performance and compelling investment strategies.

IAA has excellent access capabilities throughout the Gulf Cooperation Council Countries and also China, having successfully represented GPs that have raised over USD 1 Billion since 1996. IAA offers ancillary services to GPs including investor relations, vetting potential investors through the final diligence and closing process. IAA’s investor base is a veritable “Who’s Who” of targeted markets.

International Alliance Associates (IAA) provides valuable cross cultural advice to the GP, with the goal of raising an optimally sized fund, on an accelerated basis, through long term trusted relationships.

MISSION STATEMENT

International Alliance Associates was founded to maximize the value of cross border transactions for clients between the GCC, China, the United States, and Europe, facilitating cultural understanding and trust. Building upon the experience, knowledge, and relationships cultivated by IAA founders and advisory members over the past thirty-five years, IAA’s unique knowledge of the key players and cultures provides access equally to support market entry and management in these fragmented environments as well as to raise investment capital from these regions.

CONSIDERATIONS FOR GCC MARKET ENTRY

The “barriers to entry” in this opaque marketplace would typically require a significant resource commitment to become a well branded, trusted, appreciated and acceptable investment provider. Managing the growth and exit/capital gains orientation driving decision making requires high levels of flexibility, innovation and monitoring of the structural and political changes which are transforming the economies of this region. IAA’s team has over thirty years of experience developing, advising and closing alternative investment transactions with premier GCC clients. IAA’s regional knowledge enables clients to save significant time and costs associated with market entry and penetration. IAA’s Riyadh office provides a compelling reason for firms to acquire this intellectual capital and boost their regional brands. Well-honed diplomatic skills, coupled with the ability to structure and manage cross border strategic alignments, are vital to developing business in the GCC marketplace. Typical client transactions within the region include:

Real estate
Hedge funds
FoF’s
Structured investment products
Direct investments
Private equity entities
Company / product expansion
Sovereign fund investments outside the region

MARKET ANALYSIS

As increased globalization and liberalization of financial services occurs, regional financial entities are becoming increasingly vulnerable, relative to the competition, by not being able to attract new assets. New strategic alignments are emerging as part of the new paradigm which IAA develops and manages for clients. By leveraging off of IAA’s proven ability to develop and drive these innovative trends, clients are better able to change the menu of investment products and services, attracting targeted, new investors. The only realistic solution for firms to capture significant GCC market share requires commitment, drive and continuous management of this lucrative environment.

Trusted, long term relationships continues to drive decision making
Client considerations now include requirements such as access to newly emerging markets – liquidity – transparency and complexity – product suitability as well as investment constraints – legal – religious – risk, etc.
Highly fragmented marketplace creates multiple niche opportunities.
But more competitive, risk adjusted performance demands are growing
Strategic alignments with “best of breed” product providers has become “the model of choice”.
Sharia compliant investment product diversification proliferates – over $900 Billion USD available for Sharia or ethical investments.

STRATEGIC REQUIREMENTS

No conflict of interest
Mutual respect for the client relationship
Current database with investor profiles, criteria and preferences
In-depth “due diligence” prior to engagement
Pre-screening of potential investors
IAA acts as an “exclusive” representative in targeted markets

COMPETITIVE EDGE: DIFFERENTIATION

In support of its activities, IAA provides clients with the cross border expertise and strategic advice needed to improve direct access to the GCC market. IAA shares proprietary knowledge and contacts throughout the GCC, commits resources to supervising the development and tailoring of investment products and services and would be able and willing to enter into a long-term relationship as a “GCC Representative.”

IAA has a proven track record of helping alternative investment providers achieve strong, measurable business impact. Disciplined, fact-based analysis, systems, creative problem solving and appropriate advice is provided by IAA.

Over 400 deep, trusted, GCC institutional investment relationships
Unrivalled network of investors and strategic partners
Commitment to long-term partnerships
Top management perspective, policies, and constraints
Detailed information on investor profiles and risk tolerance
Demystification of complex geopolitical, cultural, and investment environment.
Minimization of legal, political and regulatory risk
Ability to establish a strategic GCC “beachhead”, boosting regional credibility – increased ability to transcend traditional GCC “barriers to entry”
Tailored investment structures review – advice on developing “ramped up” investment products, tailored for the mass affluent – Ongoing feedback of product enhancements requirements
Close contact with GCC consultants and press, positioned to leverage GCC value propositions

CONCLUSION

New and significant opportunities can be seized by clients with IAA’s guidance and local management. An emerging trend of Middle Eastern banks accepting an “open architecture” business model creates additional, timely opportunities. Many of the GCC investment authorities have over one trillion USD in AUM.

Clients are able to leverage off of IAA’s trusted, strategic relationships with over 400 of the premier financial institutions, seizing a portion of the estimated four trillion USD in liquidity throughout the GCC.
Relationships with many of the wealthiest and most respected families and institutions in the GCC could be quickly tapped and appropriately managed, through the knowledge, commitment and experience of IAA.
This access can achieve two strategic needs for a broad base of international business – expansion into the large consumer populace of the GGC and / or acquiring very significant amounts of investment funding from a pre-eminently wealthy region with a strategic vision and growing appetite for foreign investment to off-set historical oil based economies.
Clients, through an alignment with IAA, would be able to establish a GCC “beachhead” boosting regional credibility. Strategic alliances, with premier regional financial entities, can be developed and managed.
In the case of expansion into the region, client branding could be firmly positioned by IAA in the GCC through new and existing distribution channels.
With IAA’s experience and relationships, traditional barriers to entry can be transcended or minimized.
Cross marketing opportunities can be exploited – Distribution synergies can be realized.
Legal, political and regulatory risk would be minimized.

TERMS OF BUSINESS

To ensure an alignment of interests, a compensation structure which reflects a true partnership needs to be developed to assure the success of the investment and financial vehicles to be structured and distributed. Such an alignment provides formidable distribution networks and services. allowing a client to focus on its core business