Private Equity Firm Sets Up before Sanctions Lift

An investment banker with dual UK and Iranian citizenship has set up Iran’s first private equity firm able to take foreign investment, according to a report from Business Insider.

Xanyar Kamangar (pictured), who left his investment banking job at Deutsche Bank, wants to be ready for investment opportunities as soon as sanctions are removed.

From an initial investment of $10 million, Griffon Capital, the firm he founded with four others now employs around 20 people, and he says he has “paid an arm and a leg” to lawyers to find a sanctions-compliant structure that can launch as soon as restrictions on cross-border finance deals into Iran gets lifted.

You gain exposure to the market, before the market opens. When that digital event happens, the lifting of the sanctions, you’re already there. And you get a benefit from the credit rerating that everyone expects to happen,” said Kamangar.

The International Monetary Fund (IMF) has said Iran’s economy could hit a 5.5% growth rate next year, and hover around 3.5% to 4% annually in the years after.

Kamangar describes the Iranian middle class as “unbelievably consumerist.

When the country opens up and the economy gets a kick, it’s them who will benefit disproportionately. They’ll start spending and when they do the companies that are exposed to these consumers are going to benefit the most,” he said.

(Source: Business Insider)

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