Dubai, UAE: NBK Capital Partners, a leading regional investment advisor, today announced the final close of NBK Capital Partners Shari’ah Credit Opportunities Fund, L.P. (the “Fund”), the firm’s third-generation private credit focused strategy. The Fund closed on 29 November 2022 with c. $215 of available capital, consisting of investor capital commitments and co-investment vehicles.
This latest fundraise demonstrates the continued success and strength of the firm’s credit platform, which has raised over $530 million since its inception in 2009. The Fund was supported by institutional limited partners from Saudi Arabia, UAE and the United States, including cornerstone commitments from the Public Investment Fund of Saudi Arabia and Abu Dhabi Catalyst Partners, an independent third-party investor backed by Mubadala Investment Company and Alpha Wave Global. Other investors include insurance companies, financial institutions and family offices with a record number of new investors.
“We are pleased to mark the close of our latest credit fund and are grateful for the strong support of our limited partners,” said Yaser Moustafa, CEO at NBK Capital Partners. “The top-tier investors we have attracted provide a strong endorsement to the institutional quality of our credit platform – one that has capital and an experienced team to maintain our leadership position. We are better positioned than ever to tap into attractive investment opportunities across the region.”
Similar to its predecessor funds, the Fund’s investment strategy is to provide flexible structured capital to middle market companies in core markets of Saudi Arabia, UAE and broader MENA region through a direct origination strategy. The Fund primarily targets investments in the business services, healthcare, education, technology-enabled and consumer sectors with investment size ranging from $10 million to $30 million. With co-investment vehicles, the Fund can underwrite larger transactions.
Since 2009, the NBKCP Private Credit team has completed 15 investments across three fund vehicles. Earlier in September, the firm has announced the exit from Energia, a Saudi-based temporary power solutions business, its 10th consecutive profitable exit for its private credit portfolio.
The Shari’ah Fund, currently about 15% deployed, is expected to complete several investments in the next few months and to be 50% invested by first quarter of 2023 with a strong forward-looking pipeline. The Fund’s first investment was $20 million growth capital financing to UAE-based Reach Group to expand in Saudi Arabia. The company is one of the largest temporary staffing providers in the UAE with over 6,700 outsourced full-time employees.
Sikander Ahmed, Managing Director of Private Credit, said: “We are very pleased to have worked with our investors to achieve this milestone of closing this third-generation private credit fund. Our ability to deliver consistent, above-market returns in volatile macro environments, resonated well with investors looking to hedge their portfolios. As a leading player in a nascent market, we are well positioned to continue delivering on our strategy.”
About NBK Capital Partners
NBK Capital Partners Limited 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 offices in Kuwait City with a presence in Manama and Istanbul. NBK Capital Partners currently advises investment funds across Private Equity, 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 37 investments across a variety of sectors, with 19 profitable exits.
For more information, please visit www.nbkcpartners.com