Citizenship Invest a Dubai-based advisory company that focuses on residency and citizenship through investment programs, has been acquired by BLS International. Using BLS’s extensive worldwide network Citizenship Invest hopes to propel swift international growth.
In addition to opening offices all over the world, Citizenship Invest plans to hire a lot of people for important roles like sales consultants. Iñigo de Luna, Managing Partner at Citizenship Invest, believes the expansion would “multiply our sales exponentially in the coming three years.”
BLS International views the acquisition as a step towards enhancing its consular and visa services. BLS International has contracts with 46 nations for visa processing services.
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The change, according to BLS Joint Managing Director Shikhar Aggarwal, “strengthens synergies, boosts EBITDA, and leverages CI’s strong financial performance and high application success rate to drive growth and global market presence.”
As far as IMI is aware BLS International purchased all of Citizenship Invest’s shares for US$31 million.
The company had a very successful year in 2023, with revenue up 28% and EBITDA up 43% from the previous year.
According to these figures, the stated purchase price would be equivalent to about seven times (7x) EBITDA. Being one of the first significant acquisitions in the field this deal may provide an intriguing benchmark for the investment migration sector.
The CEO of Citizenship Invest, Veronica Cotdemiey, will continue to serve on the board of directors as an advisor and consultant. De Luna and his colleagues will remain in their roles as Managing Partners and Leaders of the Company.
According to De Luna, Citizenship Invest has been looking for a reliable partner since 2023 to support its upcoming expansion phase. Before choosing BLS International, the company looked at private banks, major travel agency groups, and elite visa providers.
Given that De Luna had previously served as the CEO of the biggest asset management and private equity organization in Spain, several private equity firms also showed interest.
The deal was facilitated by Awad Capital Ltd., which is DFSA-regulated and served as Citizenship Invest’s only financial advisor. According to Ziad Awad, CEO of Awad Capital, the agreement brings foreign direct investment to the United Arab Emirates and “exemplifies the robust opportunities within the GCC entrepreneurship ecosystem.” The sellers received legal guidance from Al Tamimi and Co.
Due to a lack of acquisition in the investment migration sector, this agreement is very notable. “For a long time, investment migration has not been an environment conducive to acquisitions,” says Savoury & Partners CEO Jeremy Savoury.
The intangible character of the industry’s assets is a major factor in its resistance to consolidation. According to Savoury, rather than actual infrastructure, purchasers in this sector are more concerned with “the network, the brand, and the expertise.”
Noting that “the synergy is great, and it is an acquisition that makes sense,” he had a positive opinion of the BLS-Citizenship Invest agreement.
According to David Lesperance, Managing Partner of Lesperance & Associates, while some firms are interested in expanding their services to include residency and citizenship through investment advisory, acquisitions are unusual.
He argues that this reticence is frequently caused by “a lack of transparency on past revenue and future projections, or reputational risk.”
He contends that the perceived reputational consequences are largely unfounded, owing to “spurious claims by the press and politicians about being a vehicle for tax evasion or other criminal behavior.”
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