NBK Capital Partners, the alternative investments arm of Watani Investment Company, has announced the first closing of a targeted $300 million shari’ah credit fund anchored by Saudi Arabia’s Public Investment Fund (PIF) and other institutional investors.
Regulated by the DFSA, the NBK Capital Partners is headquartered in Dubai International Financial Centre and its parent company, NBK Capital has office in Kuwait City with a key presence in Manama (Bahrain) and Istanbul (Turkey).
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, said a statement from the company.
The new NBK Capital Partners Shari’ah Credit Opportunities 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, it stated.
Yaser Moustafa, Senior Managing Director of NBK Capital Partners, said: "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 in this $300 million fund is not only the highest endorsement of our strength and capabilities but a clear indication of increasing investor confidence in the region’s private credit sector and its enormous potential for growth," remarked Moustafa.
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.
NBK Capital Partners said the fund is unique in that it combines the successful private credit track record of the group with the mandate to invest in private negotiated Shari’ah-compliant credit investments.
It is expected to make 10 to 12 investments of $15 million to $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 said the company.
Fundraising is led by Ziad Nasr, Head of Business Development at NBK Capital Partners, it added.-TradeArabia News Service