Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, today announced that its Private Debt Fund, Gulf Credit Opportunities Fund II, has closed three new investments for a total of US$ 46 million (AED 170 million) to support the growth plans of companies in Egypt, Sub-Saharan Africa and Turkey through structured capital solutions. All three debt transactions were executed in the fourth quarter of 2017. With a total of AED 1,744 million (US$ 471.35 million) in Assets Under Management in its private debt financing business, Gulf Capital remains the largest provider of private debt outside the traditional banks in the region.
The latest transactions bring the total number of investments of Gulf Capital’s Gulf Credit Opportunities Fund II to four, deploying over 30% of its second fund. They cover diversified sectors across the three geographies, including transportation and logistics in East Africa, oil and gas infrastructure in Egypt and consumer services in Turkey.
Dr Karim El Solh, Chief Executive Officer of Gulf Capital, said: “Our investment strategy to fund well-managed mid-cap companies operating in defensive sectors in the Middle East, Turkey and Africa (META) region has proved to be highly effective, both for our business partners and our investors. There is a huge financing gap in these markets where traditional financing is scarce, even for successful small and medium enterprises with excellent track-record looking for growth capital. Our structured investment capital has helped our portfolio companies grow to the next level, while giving our investors attractive risk-adjusted returns with a high current income. Gulf Capital today has become the provider of choice of growth capital for promising and fast-growing companies in the region.”
Walid Cherif, Gulf Capital’s Senior Managing Director who heads Gulf Credit Partners, commented: “The US$15 million transportation and logistics deal, in particular, marks a new milestone for Gulf Capital and for Fund II, as it is our first transaction in Sub-Saharan Africa. The deal consists of a growth capital investment in one of the leading logistics company in Eastern Africa. With operations based in Tanzania and Kenya, the company offers trans-national road and rail transportation of fuel, edible oils and lubricants, bulk cargo and dry goods across East and Central Africa.
He added: “The second US$22 million transaction in the infrastructure space of oil and gas in Egypt supports the growth and operational needs of a leading Liquefied Petroleum Gas (LPG) and Gasoil storage and delivery services to the Egyptian Government. This investment is the fifth for Gulf Capital in Egypt and the second for Fund II.”
Gulf Capital also closed during this period a highly structured capital transaction in a consumer water filtration company in Turkey. The funding will be used to implement the growth plans of the company, which offers subscription-based, customer service focused, water filtration services to residential and commercial customers in the country.
The last investment represents the 12th investment for Gulf Credit Partners, the manager of Gulf Capital’s structured investments and private debt funds, and the fourth from its most recent fund, closed in 2016 at US$ 250 million.
Gulf Credit Opportunities Fund II seeks to provide tailored financing solutions to mid-market companies in the META region. Gulf Credit Partners invests in companies that generate revenues between $10 million and $200 million and operate in growth sectors that are consumer focused and that are defensive in nature such as the healthcare, education, power and water, F&B, and FMCG sectors amongst others.