Azimut is the first global financial institution entering with an equity investment in a company providing financial services licensed by the local regulator, Securities and Exchange Organization, in Iran.
It is an Italian independent asset manager active since 1989 with offices in Italy, Luxembourg, Ireland, China (Hong Kong and Shanghai), Monaco, Switzerland, Taiwan, Brazil, Singapore, Mexico, Australia, Chile, the US, the UAE and Turkey.
“Today we are taking a historical first step for a global player entering the Iranian financial market,” said Sergio Albarelli, CEO of Azimut Holding.
Mofid Entekhab, founded in 2016, is the carve-out of the asset management business of Mofid Securities with $89 million of assets under management by the end of September 2017, distributed between six mutual funds and managed accounts.
Mofid Securities is the market leader among Iranian brokerage companies with more than 300,000 customers and a market share of approximately 7% as of September 2017 among 107 brokerage firms.
Entekhab has an 8% market share for equity funds and is the largest independent asset management company in Iran.
Azimut, through AZ International Holdings S.A., will purchase a 20% stake in Mofid Entekhab while Mofid Group will remain as the majority shareholder.
Azimut and Mofid will also participate pro rata to a capital increase to finance the development of a range of investment strategies in local asset classes to build a local trained sales force providing financial advisory and wealth management services and launch offshore funds for foreign investors.
“Our strategic goal is now to capitalize on our track record as the leading financial intermediary in Iran and create with Azimut a benchmark for the local asset management industry,” said Hamid Azarakhsh, chairman of Mofid Securities.
The parties have ensured that the partnership will be compliant with economic sanctions requirements.