Capital raising has been launched for Abu Dhabi-based GrowthGate, a newly-created buy-out firm structured as an investment holding company. HSBC is arranging the private stock offering of the firm, which is headed by Karim Souaid, former HSBC regional head of investment banking.

GrowthGate is looking to raise $500 million during the offering and has authorised capital of $1,000 million. The minimum investment is $2.5 million, with subscription due to close in late June. Institutional and individual investors, both regional and international, are being invited to participate.

GrowthGate will be managed by KeyStone Equity Partners. Its sectoral focus will be on oil and gas, financial services, logistics and transport, and telecoms. ‘We are looking at sectors that are very fragmented with high levels of state ownership,’ says Souaid. ‘GrowthGate will purchase enterprises operating locally and elevate them to regional level.’

Exits will be staged primarily either through initial public offerings (IPOs) or trade sales once the company has achieved a regional presence and profitability. GrowthGate itself plans to go public when market conditions are suitable.