The other 50 per cent of the investment firm will continue to be held by its founder and chief executive.

EFG Hermes has agreed to invest $21.5 million into Frontier Investment Management Partners

This deal will see EFG Hermes seek the consent of its clients to contribute its regional (non-Egypt related) portfolios and funds into FIM over the course of the next six months, the firm said in a statement.

Following the investment, EFG Hermes will own a 50 per cent stake in FIM. The remaining 50 per cent of FIM will continue to be held by its founder and chief executive, Hedi Ben Mlouka.

The independence of the FIM management team will be maintained, with Ben Mlouka retaining his position as chairman and CEO. FIM will continue executing its current strategy of delivering unique returns to its institutional investor base. The shareholders have agreed to discuss the implementation of long-term incentive plans to ensure long-term alignment of interest and retention of key employees.  

FIM will join the EFG Hermes Asset Management businesses, while retaining its independence, brand name and autonomy in investing across regional and frontier capital markets. EFG Hermes will provide FIM with all the support it needs to execute on its business plan.

The transaction has already been approved by the Dubai Financial Supervisory Authority.  Following the completion of this transaction, EFG Hermes will have USD 4.5 billion of public and private market assets under management.