Contents
Chairman’s Message The Novaar Platform Strategic Alliance Advisory Expertise Governance and Platform Structure
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Chairman’s Message
I had the honor of being commissioned by His Royal Highness Prince Saud bin Mansour bin Faisal bin Saud bin Abdul Aziz Al Saud to develop a dedicated, private investment office for his family’s estate. However, I asked, rather than creating a carbon-copy of the traditional single family office model, whether we could dare to be different. And from my question and His Royal Highness’ foresight; Novaar was born.
His Royal Highness, as evidenced by his sponsorship and earnest commitment to the Platform’s growth, firmly believes that organizations, such as Novaar, play an important role in maintaining the pace and character of economic development within the Kingdom of Saudi Arabia, the surrounding region and in some measure, the ever-changing global financial landscape. And we strive everyday to live up to this mandate.
His Royal Highness, with a deliberate hand, has formed Novaar to forge lasting alliances with prominent Gulf-based family enterprises and their respective Principals, with the goal of broadening the scope of commercial opportunity currently available to this investor class. As such, Novaar is an institutional quality resource in the investment management, advisory and proprietary investment space well positioned to provide best-in-class financial, strategic advisory and related operational services to its Platform Principals and participating partners.
On behalf of the shareholders, directors, officers and staff of Novaar, thank you for your desire to learn more about what we believe to be the most dynamic platform of its kind in the world. And if we can ever be of service to you in this or any other endeavor, do not hesitate to call upon us. With our kindest regards, Michael P. Williams Chairman 1
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‘If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed’ Edmund Burke 1729 - 1797
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The Novaar Platform Novaar is a multi-client private investment office commissioned by His Royal Highness Prince Saud bin Mansour F.S. Abdul Aziz Al Saud. Overview Novaar, as commissioned by His Royal Highness, was specifically designed to serve the unique investment requirements of politically-exposed families, institutions and their related operating concerns. To this regard, Novaar serves as a dedicated investment management, advisory and execution platform for preferred members of the Saudi Arabian Royal Family and other sovereign-affiliated Principals throughout the Gulf Cooperation Council region. Novaar, anchored by its strategic alliance with Europe’s leading commercial multi-family office, Harald Quandt Holding GmbH, is led by an experienced advisory team with deep connectivity to not only the Gulf, but also the broader global financial community. With Investment Offices in Dubai, Riyadh, New York and London, and Partner Affiliate Offices in Abu Dhabi and Bad Homburg, Novaar truly has a global reach.
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Platform Services Novaar has four Core Platform Services: • Asset Management • Proprietary Investments • Private Advisory & Institutional Services • Private Office Services
Asset Management The Asset Management Division seeks to provide the very bestin-class, bespoke investment management services, products and institutional resources to all of our partners. With regards to Services, the Asset Management Division provides customized portfolio design, supervision, risk management and return optimization for our Principals and preferred strategic partners. First of all, as a family office, Novaar has taken great care to structure a comprehensive asset management program, which
gives precedence to the decision prerogative of each Platform Principal. In this regard, the Novaar advisory team seeks only to advise its Principals and preferred strategic partners on asset allocation, liquidity management and strategic investment initiatives, not replace them. Second, as a platform designed for preferred sovereign-affiliated principals and institutions, Novaar prioritizes the use of advanced confidentiality, informational security and data protection protocols to maintain both the security and privacy of each Platform portfolio. To this end, each Platform portfolio and related investment initiative 5
is managed in a segregated portfolio structure, which utilizes industry-leading portfolio encryption standards. Additionally, for each Platform Principal, Novaar executes the following program: • Implementation of compulsory encryption and portfolio security protocols • Initiation of a comprehensive audit of the Principal’s legacy assets • Formulation of the Principal’s preferred investment strategy • Development of a bespoke ‘model portfolio’ – risk managed & optimized pursuant to the Principal’s stated investment preferences • Management of the portfolio transition process from the ‘legacy’ to the ‘model’ portfolio • Detailed reporting on all key global markets and portfoliospecific investment activities • Reoptimization of the Principal’s portfolio to respond to various market and/or event-driven dynamics Finally, with regards to Product Development, the Asset Management Division, through its strategic partners and managed subsidiaries, remains committed to developing cutting-edge proprietary asset management products, which considerably improve both the overall performance and risk profile of our managed portfolios. 6
Proprietary Investments The Proprietary Investments Division, on behalf of its Platform Principals and preferred strategic partners, seeks to originate, execute and monitor meaningful, direct investments – exclusively in successful operating companies and special situations – where a favorable risk-return investment thesis can be supported by rigorous analysis and directed contributions to governance. In this effort, the Proprietary Investments team is completely agnostic to geography, sector or asset class, instead focusing on the maturation of differentiated investment philosophies and a long-term, flexible approach to capital deployment.
Private Advisory & Institutional Services
Private Office Services
The Private Advisory and Institutional Services Divisions work in tandem to provide turnkey private advisory solutions to our Platform Principals and preferred strategic partners. In this regard, Novaar’s Private Advisory professionals are committed to providing exceptional, differentiated advice in support of various strategic, structural and/or project finance-related initiatives.
The Private Office Services Division is primarily responsible for facilitating the managed transition, whenever required, of the legacy private offices of participating Principals on to the Novaar Platform. Through the efforts of this group, Novaar seeks to reinforce its unfailing commitment to quality of service, by providing our Principals with a seamless transition onto the managed platform.
In support of on-going Private Advisory and Proprietary Investment initiatives, our Institutional Services professionals work tirelessly to coordinate the deployment of both Principal and preferred co-investor sourced capital in qualified Platform-sponsored transactions. 7
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‘Wealth is not money. Wealth lies in men. This is where true power lies, the power we value.’ His Highness Sheikh Zayed bin Sultan Al Nahyan Past President of the U.A.E. and Ruler of Abu Dhabi
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Strategic Alliance
Novaar has formed a strategic alliance with Europe’s leading commercial multi-family office, Harald Quandt Holding GmbH (‘HQH’).
HQH, a valued strategic investor in the Novaar Platform, also serves as the Core Operating Partner for all of Novaar’s global asset management activities.
HQH has an esteemed forty year history as a family trust, during which it has established itself as an unquestioned global leader in family office product development, strategy and commercialization.
Presently, HQH and its managed affiliates employ over two hundred investment professionals in fifteen representative offices throughout Europe, the United States and Far Asia.
HQH, which is anchored by HQ Trust GmbH, the family office’s primary asset management vehicle, manages a further US$14 billion through a wide-range of co-owned and managed alternative investment enterprises.
As we strive to build one of the world’s truly exemplary investment management enterprises, it imbues us with great pride to offer such unmatched co-advisory and operational resources – in partnership with HQH – to all of Novaar’s Principals, co-investors and participating strategic partners.
Utilizing an endowment-style investment approach, HQH has consistently minimized risk, fostered both asset class and geographic diversification, and maximized overall portfolio returns for its participating principals. 11
Advisory Expertise Novaar prides itself on having assembled one of the world’s preeminent investment advisory teams. With training in the arts, sciences, law, business, economics and finance, Novaar’s senior advisors have significant experience in a diverse array of financial services, which include, but are not limited to, family office development and management, portfolio administration and alternative investment advisory. Our advisors have held senior posts in various global investment banks, asset management firms, mutual fund companies and private investment concerns and, at these firms, have advised, as both principals and financial sponsors, on over US$115 billion of institutional-grade investment transactions.
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For example, Novaar’s senior advisors have: • Served as trust advisors to sovereign-affiliated families throughout the Gulf Cooperation Council region • Managed multi-billion dollar proprietary investment platforms in the United States, Europe and Asia • Deployed institutional-grade private investment capital in every established financial market – developed, emerging and newly developed alike – in the world • Served as investment managers for various global asset management concerns, which in total managed diversified holdings in excess of US$1 trillion • Structured tens of billions of dollars of global project finance investments • Led the privatizations of Mid-Eastern and African telecommunications networks • Advised on numerous financial transactions, including at its announcement, the largest and arguably most complicated restructuring in U.S. financial history • Executed the first Standard & Poor’s-rated infrastructure transaction in the People’s Republic of China
In these roles, our advisors have become experts in the strategic investment process – from origination and diligence, capital structuring and deployment, to monitoring and realization – and as such, utilize best-in-class legal, audit and specialized consultancy resources to ensure reliable, institutional-quality results. As well, the unique mix of relevant professional, educational and cultural diversity amongst the Novaar advisory team provides a distinct advantage to our Principals and participating strategic partners as they seek to satisfy the unyielding demands of maximizing the risk-return equation in a diversified, global investment portfolio.
Novaar’s staff of dedicated investment professionals hail from six continents, speak twelve languages and have led, advised or managed commercial endeavors in over thirty-five countries. Finally, the Novaar team – whether stationed in Dubai, Riyadh, New York or London – truly works as a team in executing the Platform’s mandate. Without exception, each and every member of our advisory team measures their success by one, simple standard: the success of the portfolio investments we diligence, advise and monitor on behalf of our Principals and strategic partners. In our view, it is this rare combination of preparation, perspective and purposefulness that truly sets the Novaar team apart. 13
Governance and Platform Structure The Novaar Platform, as described infra, is comprised of various operating entities, in multiple jurisdictions, with duly responsible Boards of Directors. These companies include Novaar Capital Management SPC, Novaar Limited DIFC, Novaar Capital Limited DIFC and Novaar Saudi Arabia Limited. In each case, the role of the Board of Directors is to provide guidance and strategic oversight to Novaar’s designated management. Similarly, Novaar management’s responsibility is to execute the Company’s dayto-day operational program in a manner which is consistent with the Platform’s established strategic and commercial directives. The master holding company for the Novaar Platform is Novaar Capital Management SPC, a Cayman Islands Segregated Portfolio Company (‘Novaar SPC’). Novaar SPC provides the core investment advisory, product development and asset management services to Novaar’s Principals and participating strategic partners. The Board of Directors of Novaar SPC has five members, led by its Chairman, Mr. Michael P. Williams, who is joined by Dr. Fritz Becker, Dr. Ernest Boles, Mr. Elliot H. Hayes and Mr. David P. Mapplebeck.
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Michael P. Williams Mr. Williams, a Luce Scholar and graduate of Yale University, Columbia Law School and the Stanford Graduate School of Business, is Chairman and CEO of Novaar. Mr. Williams, formerly of the international law firm, Weil, Gotshal & Manges, is principally responsible for Novaar’s strategy, general management and the custody of its core business development initiatives.
Board of Directors of Novaar Capital Management SPC
Dr. Fritz Becker
Dr. Ernest Boles
Elliot H. Hayes
David P. Mapplebeck
Dr. Becker, a graduate of Mannheim University, is CEO and Managing Director, Harald Quandt Holding GmbH and has held that position since 2002. Dr. Becker has over twentyfive years of experience in financial services and insurance at leading institutions, such as, McKinsey & Company, Basler Insurance Group and AMB Generali Holding.
Dr. Boles, a Fulbright Scholar and graduate of the University of Munich, is Managing Director, Harald Quandt Holding GmbH and the CEO of Auda International LP. Dr. Boles, formerly the Chief Investment Officer of the European Wealth Management Division, Citigroup, has over twenty five years experience in wealth management and international tax law.
Mr. Hayes, a Harvard Business School alumnus, is Managing Director and Head, Proprietary Investments for Novaar. Mr. Hayes, who joined AIG Investments as a special assistant to its CEO, was most recently a Managing Director of AIG Vantage Capital, a $2.5 billion principal investment portfolio.
Mr. Mapplebeck, a Durham University alumnus, is the Chief Investment Officer of Novaar. Mr. Mapplebeck, formerly the European General Counsel for the Charles Schwab Corporation, was most recently President of Sovereign Global Investment Limited and responsible for the day-to-day management of the $6 billion private investment concern. 15
Governance and Platform Structure (cont’d)
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Novaar Limited DIFC, referenced supra, an operating company principally owned by His Royal Highness Prince Saud bin Mansour F.S. Abdul Aziz Al Saud, is a Registered Family Office in the Dubai International Financial Centre.
Novaar Capital Limited DIFC, a managed subsidiary of Novaar Limited DIFC, is a Category Four classification operating company licensed by the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority.
The Board of Directors of Novaar Limited DIFC has three members, led by its Chairman, Mr. Michael P. Williams, who is joined by General Khaled A. Al Harthi and Mr. Bandar M. Al Ghulaiga, respectively.
Finally, Novaar Saudi Arabia Limited, a managed affiliate of Novaar Limited DIFC, administers various strategic investments, primarily real asset-related (real estate, infrastructure, industrial and natural resources) projects of interest for Novaar Platform Principals.
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‘The world’s prosperity is a unit that can not be divided.’ The Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz Al Saud
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