No winners in Kelly's sacking



On the surface, the NHL Players' Association's decision last week to fire executive director Paul Kelly - who was in the job for less than two years - is another step backwards for the beleaguered union. No official reasons have been offered. Several NHLers, both active and retired, have spoken up in defence of Kelly. The public-relations hit for the union has been overwhelmingly negative but, then again, that is nothing new for a group that has historically had problems presenting a united front.

Some of the suggested factors in Kelly's firing were his willingness to compromise with the NHL and less-than-stellar working relationships with some of the players. While these problems probably would not result in an overly healthy working environment, they also do not seem like cause for a premature dismissal. After all, the NHLPA have already had a boss who did not make nice with league commissioner Gary Bettman, and look what the union did to Bob Goodenow when he took too much of a hardline stance.

(In case you are playing catch-up, the NHLPA and Goodenow parted ways after the 2004-05 lockout, in part because the players were not willing to go along with Goodenow's all-or-nothing stance against the salary cap... which is now firmly in place.) A few days after Kelly's firing, a more realistic reason arose. The latest speculation suggests that Kelly was ousted for allegedly reading a transcript of a private meeting between the player executive and the union's advisory board. The meeting was to discuss Kelly's leadership but during the gathering the group also voted to give general counsel Ian Penny a five-year contract extension. It has been reported that Kelly perceived the process by which the extension was awarded to be a breach of the NHLPA constitution, so he eventually obtained a transcript of the meeting ... and the next thing he knew, he was out of a job.

Given that the previous union boss, Ted Saskin, was deposed after accessing players' private emails, a breach of confidence such as reading a confidential transcript could be a fatal mistake. There are, however, a few differences this time around. For starters, Kelly was apparently concerned that the union's constitution had been by-passed; in Saskin's case, it was allegedly about reading players' emails without their permission. Is it possible, even likely, that Kelly accessed the transcript in the hopes that he would see what the players and advisory board were saying about him? Sure. But also remember that Kelly is a very astute lawyer, and he is also the man who prosecuted Alan Eagleson - the original and ultimately disgraced union boss - for crimes against the NHLPA and its constituents.

It is hard to believe that Kelly would be stupid enough to put himself in jeopardy. And the fact that Penny has taken over as the NHLPA's interim director, and that former Canadian Auto Workers union boss Buzz Hargrove - an NHLPA adviser and alleged Kelly opponent - and Eric Lindros, who was fired as the union's ombudsman last year, are reportedly among the group that forced the issue, it is difficult to shake the notion that Kelly was forced out.

All the facts have not been heard. A couple of credible NHL player reps have publicly stated that there is a method to the union's madness. Then again, several other NHLers have stepped up and testified to Kelly's quality and credibility. Ted Lindsay, who tried to create a players' union 50 years ago, is one of several retired players who have taken umbrage with the decision. Whatever the case, Kelly has lost the power struggle. But once again, the NHLPA seems to be on the losing side, too.

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East)