Key Takeaways
- • bfinance opened a Dubai office in March 2024 to support and grow its Middle East and Africa client base, its 11th global location.
- • The Middle East and Africa region accounts for about 20 per cent of bfinance's total business revenue, which Dubai office head Alex Denby hopes could rise to as much as 30 per cent; roughly a decade ago the share was closer to 10 per cent.
- • Under 10 per cent of bfinance's Middle East clients are family offices and about 20 per cent are wealth managers, leaving significant upside according to Denby.
- • bfinance is an advisory-only consultant that does not manage money, earning a one-off fixed basis point fee from fund managers that win business, paid regardless of which manager is selected.
- • Following a 2023 management buyout of a 51 per cent stake formerly held by Baird Capital, CEO David Vafai leads the firm, which was founded in 1999.
Summary
In March 2024, independent investment consulting firm bfinance opened an office in Dubai to support and grow its Middle East and Africa client base, according to Wealth Briefing. The local head, managing director Alex Denby, who joined the firm 12 years ago, told the publication that the business wanted to be physically closer to clients. He said the region, which currently accounts for about 20 per cent of total business revenue, could rise to as much as 30 per cent in future, up from closer to 10 per cent a decade ago. Denby cited strong activity in Saudi Arabia and said many people are moving to the region.
bfinance competes in the same space as Cambridge Associates, Towers Watson and Mercer. Denby said the firm's key differentiator is that it does not directly manage money and focuses purely on advisory services for institutional investors. Its core business is manager search and selection across traditional asset classes such as listed stocks and private markets including private credit and venture capital. The firm avoids pre-set recommendation lists, instead designing bespoke mandates for each client. Its proprietary investment management platform, the IMP, handles large volumes of manager tenders, and a request for proposal can reach a final recommendation in as little as four weeks, though a full manager universe review typically takes 10 to 12 weeks.
The firm's revenue model charges fund managers that win business a one-off fixed basis point fee, pre-agreed with the client and charged against committed funds. Denby described this as another distribution channel for managers. In 2023, bfinance completed a management buyout involving a 51 per cent stake formerly held by Baird Capital, supported by Beach Point Capital Management, after which David Vafai continued as chief executive.
On client demand, Denby said Middle Eastern clients have shown renewed interest in equities over the past 12 to 18 months as they reshape portfolios after the 2022 and 2023 drawdowns. Private markets, both credit and equity, and Shariah-compliant investments are major themes. Denby said risk appetite in the Middle East and Africa has not risen, with continued focus on diversification. He hopes bfinance will have a significant presence in the Gulf within five years and become a household name in the region. The Middle East branch is the firm's 11th office, following London, Sydney, Hong Kong, Toronto, Montreal, Chicago, Rome, Paris, Amsterdam and Munich.
bfinance competes in the same space as Cambridge Associates, Towers Watson and Mercer. Denby said the firm's key differentiator is that it does not directly manage money and focuses purely on advisory services for institutional investors. Its core business is manager search and selection across traditional asset classes such as listed stocks and private markets including private credit and venture capital. The firm avoids pre-set recommendation lists, instead designing bespoke mandates for each client. Its proprietary investment management platform, the IMP, handles large volumes of manager tenders, and a request for proposal can reach a final recommendation in as little as four weeks, though a full manager universe review typically takes 10 to 12 weeks.
The firm's revenue model charges fund managers that win business a one-off fixed basis point fee, pre-agreed with the client and charged against committed funds. Denby described this as another distribution channel for managers. In 2023, bfinance completed a management buyout involving a 51 per cent stake formerly held by Baird Capital, supported by Beach Point Capital Management, after which David Vafai continued as chief executive.
On client demand, Denby said Middle Eastern clients have shown renewed interest in equities over the past 12 to 18 months as they reshape portfolios after the 2022 and 2023 drawdowns. Private markets, both credit and equity, and Shariah-compliant investments are major themes. Denby said risk appetite in the Middle East and Africa has not risen, with continued focus on diversification. He hopes bfinance will have a significant presence in the Gulf within five years and become a household name in the region. The Middle East branch is the firm's 11th office, following London, Sydney, Hong Kong, Toronto, Montreal, Chicago, Rome, Paris, Amsterdam and Munich.
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