The Legal 500

Nick Smith and Khalid Garousha’s investment funds practice at Allen & Overy LLP has reacted to regional market volatility with an increased focus on fund structuring advice for both local and international investors, particularly where an Islamic financing element is required. Highlights included advising Abraaj Capital on establishing a pan-MENA real estate fund, and acting for Guernsey-based Global MENA Financial Assets Limited in its de-listing from the LSE and investment in Al Fajer Retakaful Insurance Company, a deal which involved a $50m share buyback.

Herbert Smith LLP has a prominent position regionally thanks in no small part to the investment funds expertise of Zubair Mir and Judith Watson. The team primarily advises on cutting-edge investment funds for elite clients including EFG-Hermes and Investcorp, handling the gamut of funds-related matters, from formation and structuring, to fundraising and transactions. Highlights included advising Investcorp’s Gulf opportunities fund in its acquisition of a $50m equity stake in a Turkish supply chain manager of agricultural commodities and, in an illustration of its Islamic financing capability, it advised Noor Islamic Bank on establishing a shari’ah-compliant fund. Private equity specialist Paul Scarr was promoted to partner in 2010.

Despite a shrinking market for new fund formations, Al Tamimi & Company retained its visibility on high-profile regional mandates. Reflecting its strengths in shari’ah-compliant REITs and fund formation, banking and finance partner Lynette Brown acted for Dubai Islamic Bank in setting up Emirates Real Estate Investment Trust, a shari’ah-compliant property investment fund, which was the first such REIT to be set up in the Dubai International Finance Centre (DIFC). It also advised Energy City on structuring and formation of a $200m fund for land development investments in Qatar.

Clifford Chance is renowned for its private equity expertise, and is accordingly an active player advising sovereign wealth and other investment funds in the region, including Dubai International Capital and Aabar Investments. It recently advised the latter on its proposed acquisition of a 16.32% stake in Banvit Bandirma Vitaminil Yem Sanayl, a company listed on the Istanbul Stock Exchange.

Gibson Dunn’s Dubai-based investment funds practice was energised by Chézard Ameer’s arrival from Ashurst LLP in January 2011. Since bringing his team over, the group has been selected as primary legal counsel to the Abu Dhabi Retirement Pensions & Benefits Fund, and also acted for Carlyle Group on its fund restructuring and establishment of the first limited partnership based in the DIFC. Nick Tomlinson is recommended for his private equity expertise.

King & Spalding largely represents private equity sponsors and financial institutions on fund-related transactions, and is a regular feature on M&A-related matters for some of the most prominent funds in the region. Islamic finance expert Jawad Ali and Nabil Issa also handle fund formation and structuring matters for private equity clients, which include Abraaj Capital.

Under the stewardship of Alan Bainbridge and Jane Clayton, Norton Rose (Middle East) LLP has amassed a broad client base that includes sovereign wealth funds, regional private investment groups, and global banks and financial institutions. Highlights included advising Royal Capital on the structuring and launch of the Royal Capital MENA multi-market strategy fund.

SJ Berwin LLP has brought together a ‘first-rate’ team of funds specialists led by Benjamin Aller, who is ‘an excellent practitioner at the top of his field’. Since establishing its presence in Dubai in 2009, its focus on fund formation and structuring has attracted a client list that includes Swicorp, Instrata Capital and Qatar First Investment Bank. It also took steps to broaden its capabilities into transactional matters by recruiting Hamish Walton from Clyde & Co LLP. Bilkis Ismail is also recommended.

Conyers Dill & Pearman is one of the few offshore firms with a physical presence in Dubai, and its exclusive and ‘expert’ focus on Cayman Islands, BVI, Mauritius and Bermuda law means it typically works alongside other international firms on the major deals across the region. In 2011, it advised new client Abu Dhabi Capital Management on the Cayman aspects of a private equity fund targeting Middle East based secondary interests. Fawaz Elmalki has ‘an astute knowledge of offshore regulation’.

Hadef & Partners’ funds practice is particularly noted for its regulatory expertise, and has a track record that includes having assisted the Dubai and Abu Dhabi governments in developing regulatory provisions governing investment funds in the region. It has also been advising a number of international financial institutions on the regulatory issues relating to the structuring and marketing of funds in the UAE and DIFC, particularly in light of the transition of jurisdiction from the UAE Central Bank to the Securities and Commodities Authority. Sameer Huda and Philip Jolowicz are the figures to note.

Hogan Lovells (Middle East) LLP’s team is ‘always professional and efficient in its approach’. Its expanded international scope and broadened regional capability has contributed to ‘very good funds lawyer’ Imtiaz Shah and his team winning new clients in 2011, among them Franklin Templeton, Emirates NBD and HK Advisory. Despite the overall paucity of new funds the team has maintained a healthy deal flow, including advising Fajr Capital on its acquisition of a stake in Bank Islam Brunei Darussalam.

Latham & Watkins LLP’s investment funds practice combines ‘impressive speed, knowledge and efficiency’. Kai Schneider heads this team of funds specialists, which recently acted for TLG Capital on the formation of its Africa Growth Capital Fund, and advised Bahrain Mumtalakat Holding Company on structuring an asset management platform.

Maples and Calder is ‘among the preferred firms for offshore advice’, and provides advice that is ‘well thought out and presented’. ‘Top-notch lawyer’ Philip Ireland and the ‘responsive and involved’ Tahir Jawed acted for EFG-Hermes on the master-feeder structure of its MENA fixed-income fund. Ireland also worked alongside associate Robin Harding on the Cayman aspects of a $500m shari’ah-compliant real estate fund focused on Russia and the CIS.

Simmons & Simmons Middle East LLP’s investment funds practice provides both conventional and Islamic financing expertise through Muneer Khan and Natalie Boyd, who advise asset managers and investors across the region. The team has been working alongside London colleagues on a number of shari’ah-compliant funds for major regional banks.

Vinson & Elkins L.L.P.’s regional funds practice handles transactions for private equity firms such as Lime Rock Partners. Ayman Khaleq and his team also acted for an Asian sovereign wealth fund on its investment into a $500m energy fund with parallel conventional and shari’ah-compliant elements.

Tim Buckley’s arrival from the firm’s Cayman Islands office has consolidated Walkers LLP’s capabilities for offshore structuring of regional investment funds. It focuses particularly on shari’ah-compliant offshore fund structuring, and advised on the launch of Shari’ah Capital’s hedge fund.