DWS Group (DWS), has entered into a binding agreement to acquire an equity stake of 15 percent in Neo Technologies - a financial technology company through Neo Strategic Holding Limited. Neo Technologies is a first mover in digital asset management solutions in the MENA region, based out of the Dubai International Financial Center (DIFC). As part of the transaction, a strategic partnership will be formed whereby DWS and Neo Technologies will collaborate on the development and expansion of digital asset management services throughout the region.
“By investing into this platform, we further underline our growth commitment into digitization and technology as communicated in the course of our IPO. Neo Technologies enables DWS to obtain further presence in a region with high growth rates in asset management”, said Thorsten Michalik, Member of the Board and Co-Head of DWS’ Global Coverage Group, responsible for the asset manager’s distribution in EMEA and APAC.
Neo Technologies operates a platform-as-a-service model for the financial services industry allowing financial institutions to rapidly introduce digital asset management solutions to their end clients. As a white-label solution, Neo provides an integrated front, middle and back office that is built specifically for the MENA region, adapting to local languages and regulatory requirements. Integrations with partner platforms, brokers, and specialist advisors enable clients of Neo Technologies the ability to efficiently scope the services and products they offer to their end users. Through the Neo Technologies platform, financial institutions are enabled to focus on enhancing client relationships. Neo’s team, working with NBK Capital, launched Kuwait’s first digital investment service: NBK Capital SmartWealth.
“Technology has greatly evolved investment management and redefined client engagement over the past few years” said Fahad Albader, CEO and Founder of Neo Technologies. “In the near future, platforms with specialized multi-tenant service providers will herald a new era of solutions for the financial services industry. That is why we at Neo Technologies are thrilled to welcome DWS and their capabilities to the platform”.
NBK Capital’s CEO, Faisal Al Hamad added, “As a minority investor in Neo, our objective was to obtain a first-to-market and as customized a solution as possible for our digital services. The team has delivered, and today NBK Capital SmartWealth is the core of our digital strategy for investment services at the National Bank of Kuwait. As a client of the Neo platform, we welcome DWS as a strategic partner and look forward to benefiting from the enhancements of products and services.”
With an expected acceleration of digitization, regulatory oversight, and shifting client demographics in the MENA investment management industry, firms will require to adopt new distribution models, modern technology infrastructure, and specialized services such as investment & risk advisory. The Neo Technologies’ platform provides a proven, regionally compliant solution for firms looking at technology to help shape their business models for the future.
The parties agreed to maintain confidentiality on the price of the transaction and further financial details. Closing of the transaction is expected for year-end 2018.
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DWS Group (DWS), is one of the world's leading asset managers with EUR 692bn of assets under management (as of 30 September 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines. Deutsche Bank AG is the majority shareholder of DWS.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.
DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team.
Neo Technologies is a group of companies comprised by Neo Strategic Holding Limited, a holding company and its subsidiary Neo Mena Technologies Ltd – a licensed company in the Dubai International Financial Center (“DIFC”). The company provides technology and consulting services to businesses interested in developing digital asset management services to their end clients. Neo Technologies comprises of 18 team members across various experiences and competencies in technology and financial services.
NBK Capital, a leading investment company in the region, sets the standard in growth-focused innovative financial products and services. A world-class investment house, NBK Capital’s customer-centric approach provides forward-thinking solutions that address the specific investment needs of clients and investors, institutional customers and high-net-worth individuals.
NBK Capital leverages local and regional experience and expertise by combining the strengths, resources and global network of the National Bank of Kuwait SAKP, one of the largest and oldest financial institutions in the region, with best-in-class investment structuring and execution, on a broad array of financial strategies to consistently deliver integrated value-added solutions.
Innovative products, objective research, creative thinking, timely implementation and excellence in service are the standards of quality of NBK Capital.
Operating regionally from Kuwait, Dubai, Istanbul and Cairo, and with over 175 investment professionals, NBK Capital prides itself on a reach and scale that is global, a presence that is regional and a service level that always remains personal.