Threadneedle gains Islamic opportunity from Gatehouse

MosaicAsset manager Threadneedle Investments has purchased 2% of Gatehouse Bank, a specialist in Sharia-compliant products and services.

Gatehouse, formed in 2008, originates Sharia-complaint investments for clients looking to diversify portfolios. Last year the bank announced the formation of a Shariah-compliant $100 million (€94 million) mezzanine real estate fund relating to European assets based in the UK, Germany, Netherlands and Luxembourg.

The bank has a history of bridging capital from the Gulf Cooperation Council and Southeast Asia with investment into Western markets. Islamic finance has been steadily growing in popularity, the UK was the first non-Islamic country to release a sukuk, a Shariah-compliant bond, last year. The £200 million (€283 million) product was heavily over-subscribed, receiving orders of over £2 billion from global investors seeking Islamic debt.

Ted Truscott, chairman of Threadneedle, says he’s pleased with the investment as it allows his firm access to Gatehouse’s relationships across the Islamic world and he looks “forward to exploring mutual areas of interest”.

Fahed Boodai, chairman of Gatehouse, says: “We are pleased to have as a shareholder a major international asset manager. 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.”

London-based Threadneedle has assets under management of $148.2 billion.

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