Targeted US$ 300 Million Shari’ah Credit Opportunities Fund to Invest in Saudi Arabia, UAE and Select MENA Countries
Dubai, UAE and Riyadh, KSA: NBK Capital Partners has announced the successful first closing of a targeted US$ 300 million Shari’ah credit fund anchored by Saudi Arabia’s Public Investment Fund and other institutional investors.
NBK Capital Partners employs a pioneering strategy for flexible, long-term direct lending launched in the wake of the global financial crisis to meet the financing needs of mid-sized firms unable to secure attractive financing terms. The new fund will provide flexible capital solutions to mid-market companies in the Middle East and build on the impressive track-record of credit investments achieved since 2009.
“We are proud to have secured the full faith and endorsement of one of the world’s largest and most respected sovereign wealth funds. For the PIF to play an anchor role on this US$ 300 million NBK Capital Partners Shari’ah Credit Opportunities Fund is not only the highest endorsement of NBK Capital Partners’ strength and capabilities but a clear indication of increasing investor confidence in the region’s private credit sector and its enormous potential for growth,” says Yaser Moustafa, Senior Managing Director of NBK Capital Partners.
Led by Sikander Ahmed, Managing Director and Head of Private Credit, the private credit team at the firm will advise the Shari’ah Credit Fund on providing flexible financing solutions to private sector companies in Saudi Arabia, UAE and select adjacent markets. The funding gap for regional companies is significant due to changing regulations and inefficient capital markets, with these challenging conditions further exacerbated by the global COVID-19 pandemic.
The Shari’ah Credit Fund is unique in that it combines the successful private credit track record of NBK Capital Partners with the mandate to invest in private negotiated Shari’ah-compliant credit investments. The Shari’ah Credit Fund is expected to make 10 to 12 investments of US$ 15 million to US$ 50 million throughout its eight-year life and to generate attractive cash yield and total returns.
This institutional investment fund was developed from a long-running investment strategy, in response to demand from Shari’ah-compliant institutional investors in the region and in Asia. Fundraising is led by Ziad Nasr, Head of Business Development at NBK Capital Partners.
The DIFC-headquartered firm boasts a dedicated and seasoned team of investment professionals with more than a decade of experience in advising in MENA credit securities. The private credit team at NBK Capital Partners has pioneered advising on Shari’ah-compliant credit investments, with fourteen private credit investments to date.
About NBK Capital Partners:
NBK Capital Partners is the alternative investments arm of Watani Investment Company K.S.C.C. (“NBK Capital”). Regulated by the DFSA, the Firm is headquartered in Dubai International Financial Centre, UAE, and its parent company, NBK Capital has office in Kuwait City with a presence in Manama and Istanbul. NBK Capital Partners currently advises investment funds across Private Equity and Private Credit and Real Estate platforms. The Firm targets companies in the MENA region presenting significant growth potential and opportunities for value creation. Since the launch of NBK Capital’s first fund in 2007, NBK Capital Partners has advised in successfully closing 35 investments across a variety of sectors, with 17 consecutive profitable exits to date.
About Public Investment Fund:
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia for the benefit of its people while helping shape the future global economy. PIF is building a world-class portfolio through investments in attractive, long-term opportunities across diverse industries and asset classes internationally, while unlocking new sectors at home. PIF works alongside global strategic partners and renowned investment managers, and acts as the Kingdom of Saudi Arabia’s primary investment arm aiming toward generating long-term value for the Kingdom of Saudi Arabia in line with Vision 2030.