NewDawn GSE Asset Management Limited has become a leading shareholder in global financial services firm HSBC Holdings plc. The company, a wholly-owned subsidiary of DIC Asset Management (DICAM) and General Partner for the US$2bn Global Strategic Equities Firm (GSEF), made a ‘substantial’ investment in the UK firm. The size of the stake has not been disclosed.
It is the first of a number of planned investments by GSEF in global Fortune 500 companies. The fund is hoping to become a leading shareholder in pre-eminent global large capitalisation stocks, while aiming to create value through long-term exposure to a concentrated portfolio of undervalued companies.
HSBC is one of the world’s largest banking and financial services organisations, serving over 125 million customers worldwide.
Sameer Al Ansari, executive chairman and CEO of Dubai International Capital LLC, said: “GSEF’s investment in HSBC is another step in confirming DIC as a global investment company. This is the first of many planned investments that will eventually see GSEF investing about US$10bn in global companies.”
Dubai International Capital is a private equity firm owned by the ruler of the Gulf Arab emirate. A Saudi Arabian investor recently invested US$6.6bn in HSBC. Maan al-Sanea bought a 3.1% stake in February, after problems in HSBC’s US mortgage business hit its share price.
It is ranked the fifth-largest company and third-largest banking company in the world in Forbes’ Global 2000. The bank is the second largest corporation in the world in terms of assets: As of Dec 31 2006, HSBC’s assets stood at US$1.861 trillion, while Citigroup reported US$1.884 trillion.
It reports its results in United States dollars, as 80% of its earnings originate from outside the United Kingdom. Nearly 22% of its earnings are from operations in Hong Kong, where it was headquartered until 1991.
It is the largest bank in Hong Kong, and at the end of 2005 was the largest banking group in the world by Tier 1 capital. HSBC’s head office is now located in the HSBC Tower in London’s Canary Wharf.
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