The True Story Behind The Creation Of INVESTCORP
INVESTCORP – (07) The Summer of 1981
As mentioned earlier, Mr. Kirdar’s one-year secondment to the AMF was to end on August 15, 1981, and he was intending to return to Chase Manhattan-London. Dr. Hashim’s five-year term of office was due to end in May 1982, unless renewed for a similar period. INVESTCORP was in the incorporation process. Kirdar requested a private meeting with Dr. Hashim to discuss their future relationship with INVESTCORP and whether he should go back to work for Chase Manhattan-London (the post for which he bought a house and relocated his family to London) or continue with INVESTCORP project. In this meeting, Mr. Kirdar asked Dr. Hashim specifically if he (Hashim) was interested in the post of INVESTCORP’s CEO when it was finally incorporated. If so, then Kirdar will go back to Chase Manhattan-London. As Hashim was still President of AMF with the possibility of renewal for a second five-year term, Hashim response to Nemir’s was as follows:
Nemir should resign from Chase and Hashim would propose him to become the President and CEO of INVESTCORP for a three-year term of office. Hashim will be the Chairman of the Executive Committee for a similar period, i.e. three years.
Nemir Kirdar was extremely happy with Dr. Hashim’s proposal. At the end of the meeting he turned to Hashim and said,
Dr. Hashim, I fully respect your kindness and generosity. I admire your courage, perseverance and determined continuation with the creation of this unique investment vehicle [INVESTCORP]. You are giving me the opportunity to make a couple of million dollars and then retire at the West Coast. (7)
Based upon the above understanding, on July 13, 1981, Dr. Hashim wrote to Willard Butcher (Chairman of the Board of Chase Manhattan Bank) advising him of Kirdar’s decision not to return to Chase.
(7) By “West Coast” Mr. Kirdar may have been thinking of California!!