Robert Smith says going from Connecticut to Tibet made him realise there was a big world out there waiting to be explored. Christopher Pike / The National
Robert Smith says going from Connecticut to Tibet made him realise there was a big world out there waiting to be explored. Christopher Pike / The National

From acting to energy consulting: it's a tough act to follow



These days he advises oil companies on how best to invest their money. But not so long ago Robert Smith was more likely to be found treading the boards in Los Angeles than in a boardroom in the Middle East discussing energy.

It may seem like an unlikely career path, but the 36-year-old, from Connecticut in the US, spent eight years as a Hollywood actor before becoming a commercial oil and gas consultant for Dubai-based Facts Global Energy.

At one point he even shot a vitamin drink commercial with the singer Kelly Clarkson, which led to his face becoming known across America.

"I loved the thrill of being on stage or in front of the camera," he says. "I suppose it was the allure of Hollywood."

Mr Smith says his career choices have always been against the stream. While studying at Johns Hopkins University in Baltimore, he spent a term studying Tibet and the downfall of the Tibetan resistance against the Chinese.

"That experience had a big effect on my life," he comments. "Connecticut, where I grew up, is a nice, quaint little state but going from an upper middle class existence to Tibet made me realise there was a big wide world out there and I wanted to explore it."

Later he studied ethnic Muslims in Kazakhstan, Azerbaijan and Istanbul. As a result of his studies, he won a scholarship to do a Masters at the University of Hawaii. The title of his thesis was "Central Asian oil and gas development and its effect on Central Asian ethnic Muslims". This led to a job with an oil and gas company in Hawaii.

But two years later he became disillusioned with his career. "I was making a good living but I no longer found it challenging," Mr Smith says. "I wanted personal satisfaction more than anything else.

"I remember walking into a bookstore in New York in 2002 and taking a book about acting off the shelf. There was a line in it by the actor Sandy Meisner: 'Acting is living truthfully under imaginary circumstances'. That really hit home."

Despite never performing before, Mr Smith decided to take up acting and in 2003 moved to LA, where he enrolled on an acting course. At first his interest in the thespian world was just a hobby, but by 2007 he was being offered enough work on stage, in film and commercials to make a full-time living.

However, his passion for his new profession faded during the economic downturn.

With fewer parts on offer because of budget cuts, the turning point came four years ago when he attended an audition and found the other actor reading for the part was the child star of Free Willy - Jason James Richter.

"If someone as well known as him was going for a job at such a low rate of pay it showed that everyone in the business was struggling," says Mr Smith. "It made me realise it just wasn't worth it."

Turning to production instead, he began raising finance for a low- budget independent movie. That brought him into contact with a man he'd met years before in Hawaii - an Iranian by the name of Fereidun Fesharaki, who was starting a company in Dubai. He offered Mr Smith a job as a commercial oil and gas consultant. Three years on and the former actor now lives in Dubai but works across the UAE and the Middle East. While he misses acting, he says the experience has helped his new career.

"I'm more at ease with myself than I used to be," he says. "I'm more confident; I've better people skills; and I have a thicker skin."

His interest in the film industry remains, however. He's currently attempting to raise funding here for three movies (two short independent films and one commercial) to be shot in the US. He believes his knowledge of the industry will encourage people here to invest.

"More blockbusters are being released and fewer independent, low-budget films," he says. "I believe there exists a good business opportunity as a result. My goal is to change the film distribution and production models and produce low-budget movies which make a profit."

Whether Mr Smith stays in the oil and gas business remains to be seen.

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
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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.”

The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Drishyam 2

Directed by: Jeethu Joseph

Starring: Mohanlal, Meena, Ansiba, Murali Gopy

Rating: 4 stars

Black Panther
Dir: Ryan Coogler
Starring: Chadwick Boseman, Michael B Jordan, Lupita Nyong'o
Five stars

Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

RESULT

Huddersfield Town 2 Manchester United 1
Huddersfield: Mooy (28'), Depoitre (33')
Manchester United: Rashford (78')

 

Man of the Match: Aaron Mooy (Huddersfield Town)