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13.06.2023
#WEALTH STORIES

An ‘Entrepreneur & Family’ wealth story

Take 2 minutes to discover how BNP Paribas Wealth Management leveraged on its One Bank model to execute an Entrepreneur investment & financing plan.

Khurram Jafree, Head of RFP

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 In this Wealth Story, Khurram Jafree explains how he was able to transform a client's high expectations into investment opportunities.

Transcript of the video:

I'm Khurram Jafree. I work for BNP Paribas Wealth Management, based in Dubai.

I'd like to tell you a story that illustrates the robustness of our balance sheet and our One Bank integrated model.

We were approached recently by a client to help them with some of their requirements.

For background, they were the largest shareholder in a large family business and had a family office looking to deploy liquidity into assets to generate some returns.

The investment objectives were challenging, they had a growth bias to them, but also required an income to supplement ongoing requirements for liquidity.

Of course, not only was this required in a tight timeline, but we were in competition with other banks to deliver this mandate.

The client was looking to begin a relationship with a well-capitalized European institution to diversify away from their banking exposure from existing banks, but one that could also accompany them in delivering investment solutions, wealth structuring expertise and access to the bank’s balance sheet.

The mandate, of course, was asked of several organizations. Two specific areas of added value.

The investment teams, through a combination of discretionary portfolio management and advisory, were able to construct an investment portfolio that not only delivered the challenging returns the client expected, but also introduced the capability of private assets to help the overall risk reward of the portfolio.

And through this strategy, we were able to meet the income needs of the client as well.

On further discussions, we found the client also had requirement for developing a European real estate portfolio.

Through our dedicated wealth planning team with expertise in real estate and family governance, specifically concerning the next generation, we were able to structure a complex deal bringing in other parts of the Group to help complete the transaction.

Namely, BNP Paribas Real Estate whose knowledge and expertise delivered the properties that were requested.

Of course, the credit structuring teams were able to deploy the right financing mix to complete the transaction.

Furthermore, because it involved a large amount of FX, conversions from US dollars to euros, the advisory teams began to be engaged again, but this time using FX to optimize the client's conversion prices complementing the overall investment portfolio.

For the most demanding of clients, there is never one requirement. It's always a combination of requirements.

And they will partner with those organizations that can fulfill this across several areas.

This case shows that when we are able to bring trust to a relationship and clients are confident in your expertise, those relationships can become very deep.

Although the request initially was driven by investment returns, it was very satisfactory to be able to deliver client requirements across a range of solutions that in fact we probably didn't expect at the start of the discussions.

All in all, there are a range of solutions that the bank can offer across clients’ balance sheets of assets, liabilities, and equity, but that are very bespoke in nature, to the capabilities of the teams that deliver them at the service of our clients.