The UAE Ministry of Economy and planning has granted its initial approval for the incorporation of Gulf Capital Private Joint Stock Company, a regionally focused private equity firm.
Headquartered in Abu Dhabi, the Company’s strategy is to acquire control stakes in highly profitable and fast growing private companies in select industries in the Gulf and through active ownership, accelerate their growth and profit rates with a view to exiting them through IPOs or trade sales in a relatively short timeframe. The Company intends to raise a minimum of AED500 million, with 60% offered to select UAE investors and the remaining 40% to other prominent regional investors. Mashreqbank, a core backer of Gulf Capital, will act as the lead receiving bank for this share offering.
“The strength of our firm lies in its diversified regional shareholding and we have gone to great lengths to bring together some of the most reputable investors in Saudi Arabia, Kuwait, Bahrain, Qatar and the UAE. We are seeing the rise of one of the first truly pan-GCC investment companies with deep regional shareholding which will be key both for deal flow sourcing and our regional expansion,” said Mr. Hareb Masood Al Darmaki, Chairman of the Founders Committee. The other members of the Founders Committee include Mr. Nasser Ahmad Khalifa Al Soweidi, Mr. Suhail Al Mazroui, Mr. Riad Kamal and Dr. Karim El Solh.
“Gulf Capital will buy stakes in private companies in select fast growing industries, including the oil & gas, power, financial services, logistics, telecom, construction and manufacturing industries. To secure the requisite industry expertise, we are assembling for the first time in the Gulf an Industry Advisory Board comprising some of the most illustrious and knowledgeable industry experts to advise us on the acquisition and growth of companies in specific sectors. In this approach, Gulf Capital is emulating the best-in-class practice of the leading global private equity players,” said Mr. Al Darmaki.
“Gulf Capital’s recent GCC offering was massively oversubscribed, highlighting the firm’s unique positioning and regional investors’ thirst for late stage and pre-IPO deals. With IPO allocation rates in the Gulf hovering around the 1% at best, the only way to secure a meaningful allocation in IPOs is to come in at a pre-IPO level,” said Dr. Karim El Solh, CEO of Gulf Capital. Dr. El Solh is best known for lead managing some of the most illustrious and record breaking IPOs such as the Aabar, Aldar, Aramex and Sorouh IPOs. During his tenure as CEO of the National Investor from 2001 to 2005, the investment bank firmly established itself as the leading investment bank in the UAE, earning in the process the coveted “Best Equities House in the UAE” by Euromoney and “Best Private Equity House in the Middle East” by Banker Middle East.
“Gulf Capital’s pipeline is full of interesting investment opportunities and the firm is currently conducting live due diligence on three potential pre-IPO deals. The strength of our team is not only in securing transactions but also in structuring and executing successful exits for our investments. Gulf Capital’s team has executed more IPOs than any other institution and has developed a unique expertise in successfully realizing investments. This is key for our investors, as what matters most to them, at the end of the day, are the successful exits and the return on investments,” added Dr. El Solh.
Following the tremendous success of its fundraising efforts in the GCC, Gulf Capital is now launching its UAE roadshow. The local offering will be completed by the end of October, in time for the firm to acquire significant stakes in its first two pre-IPO transactions. “Given its regional shareholding, unique Industry Advisory Board, strong deal flow, deep management team and best-in-class practice, Gulf Capital is poised to raise the bar in the regional private equity scene and position itself as one of the most dynamic and sophisticated regional investment firms,” added Mr. Al Darmaki. Outlining long term plans for the Company, he concluded: “Once the Company is fully invested and capturing substantial earnings from its subsidiaries, it will be listed in its own right in the UAE, thereby providing an additional exit and liquidity for our investors.”
