Gulf Capital closes second private debt fund

19 December 2016

Investments will be made in defensive sectors across the Middle East, Turkey and Africa

Gulf Capital has closed its second private debt and mezzanine fund over its target cover of $250m (AED925m).

The Gulf Credit Opportunities Fund II is an actively managed fund that will invest in a diversified portfolio of mezzanine, convertible debt and preferred equity issued by privately-owned mid-market companies across defensive sectors and geographies in the Middle East, Turkey and Africa.

Like its predecessor, Fund II will invest in mid-market companies generate more than $5m in earnings before interest tax, depreciation and amortisation (Ebitda), have revenues of $20m-$250m and operate in non-cyclical, growth sectors that are defensive in nature such as healthcare, education, industrials, power and water, oil and gas servicing amongst others.

The fund’s average investment size ranges between $10m and $30m, and is expected to finance 10 to 12 SMEs throughout its lifespan.

Gulf Credit Partners, which manages Gulf Capital’s private debt business, sourced commitments for the fund from sovereign wealth funds, international institutional investors, regional insurance companies, foundations, and family offices.

Gulf Capital shifts focus to consumer-driven investments

Karim el-Solh, Gulf Capital

Karim el-Solh, Gulf Capital

Karim el-Solh, Gulf Capital

Interview: Karim El-Solh, CEO, Gulf Capital

Gulf Capital’s CEO Karim el-Solh made a crucial decision at the end of 2014 as oil prices plunged and the outlook for the regional economy softened.

“At the end of last year, when we saw oil prices collapsing, we saw the writing on the wall. We decided to de-risk and reduce our exposure to energy investments and focus more on consumer-driven investments,” he says.

Founded in 2006, Abu Dhabi-based Gulf Capital has enjoyed considerable success over the past decade. It manages about AED11bn ($3bn) of assets with about 40 per cent in private equity, 40 per cent in real estate and 20 per cent in credit and mezzanine funds. “We are one of the largest alternative asset managers focused exclusively on the region,” says El-Solh. Read more

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