Gulf Capital is raising more than $750 million through a new investment fund as the Abu Dhabi-based asset manager aims to double its portfolio of assets to $5 billion in the next five years, its chief executive has said.
The company, which currently has $2.4 billion in assets under management, expects to reach the first closing of the GC Equity Fund IV over the summer and the final funding target in early 2024, Karim El Solh, chief executive of Gulf Capital, told The National in an interview in Abu Dhabi.
“It usually takes a year to fundraise, so final close will be early next year,” he said.
“Hopefully, by the end of 2023, we will close our portfolio at the $3 billion [mark]. And I will say my goal, over the next five years, is to cross the $5 billion [mark].”
The company has managed to expand the size of its assets with the launch of every new fund since it began operations 16 years ago.
“We're raising bigger and bigger funds … the first one was $190 million, our second was $533 million, the third fund was $750 million and, hopefully, we will exceed that in the fourth fund,” Mr El Solh said.
“Launching more funds is basically increasing our portfolio.”
For the latest fund, the company has received strong interest from its existing investors, backed by sovereign wealth funds, family offices and pension funds.
Investor interest from Asia, in particular, has been strong, said Mr El Solh, who recently held roadshows in countries and territories including China, Hong Kong, South Korea, Singapore and Malaysia.
This month, the company received a licence from regulators in Abu Dhabi Global Market and Singapore that will help it expand operations, raise funds and tap a wider pool of investors.
“We've done a very good job at building a global following. A third of our LPs [limited partners] are from the Gulf, a third from Europe, about 25 per cent in Asia and the balance in the US,” he said.
“Now we raise more money outside the Gulf than in the Gulf, and this is something we're very proud of to attract capital to the region. People think the Gulf is an exporter of capital … but we are attracting global money to the region.”
The launch timing of the company’s latest investment vehicle is “great” as the Gulf region is further solidifying its status as an attractive destination for investments.
The region’s economic resilience after global headwinds has also boosted investor confidence, Mr El Solh said.
“We're entering our golden age and we are getting a lot of good feedback from global investors saying, 'we are keen to invest in the Gulf',” he said.
“We almost have like a negative correlation to the rest of the world. When Europe and US are entering recessions, we are having our best years.”
Gulf Capital, which sources deals across markets in the Middle East and South-East Asia, has so far made 37 investments in growth markets through its seven funds and investment vehicles.
Its $750 million growth equity fund launched in 2016, which was the largest fund raising in the region at the time, is currently 90 per cent invested. The company plans to fully invest it and will likely announce deals during the second quarter of this year.
Gulf Capital has exited from all investments in its first fund and 10 out of 12 companies it invested through its second fund.
The companies it invested in through its third growth fund are now maturing and most of them have posted record profitability during 2022 as economies recovered.
“They are getting [to] the size of profitability where we can explore exits. We are working now on at least three exits, simultaneously,” Mr El Solh said.
“We will be announcing one very shortly, but we're finishing the exit on two [more].”
In October last year, Gulf Capital exited its investment in Tunisian olive oil producer CHO Group. In May, the Abu Dhabi company and NBK Capital Partners exited their investments in Jordan’s Classic Fashion Apparel Industry.
In March 2021, the alternative investment manager exited its investment in Middle East and Africa energy services contractor Egyptian Chinese Drilling Company, seven years after making its initial investment.
The company is now gearing up for its fourth fund and if it manages to do the initial close over the summer months, it will start investing those funds in the fourth quarter of this year.
“We're preparing the pipeline and it is looking very healthy,” Mr El Solh said.
The ticket size of Gulf Capital’s investment deals usually ranges between $50 million to $100 million. However, it is open to partner with other investors to make much bigger deals for controlling stakes in companies.
The company’s existing investors are backed by large sovereign wealth funds and pension funds, allowing Gulf Capital to “write much bigger tickets with our existing investors” or with other private equity companies.
“We're looking now at an opportunity, a bolt-on acquisition, at over $250 million,” he said. “We can flex up and lean on our big backers.”
The deal in the business services sector will likely close during the next quarter, he added.
Although the company remains bullish on prospects of investing in Asia through its new Singapore hub, it remains open to acquisitions in other markets, including the US and Eastern Europe.
“The corridor for us is clear from the near to the Far East. But we are also always looking for opportunities elsewhere and [one of Gulf Capital portfolio companies] is looking at some bolt-on opportunities in the US,” Mr El Solh said.
“It’s an example of you go where the opportunities are.”
Gulf Capital, which runs private equity, growth capital and real estate businesses, invests in five core areas of technology and FinTech, healthcare, business services, consumer and sustainability.
It is exploring other sectors of the future economy and plans to launch a dedicated fund to invest in sustainability-linked themes.
“We look for innovative firms and we might look at other strategies that we can launch. It could be interesting to look at climate change and sustainability as a dedicated fund,” Mr El Solh said.
Food security is another investment area Gulf Capital is actively evaluating for deals, considering the Gulf region relies heavily on food imports.
“We are looking actively at sectors like vertical farming, food security — that's something very interesting,” he said.
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
EPL's youngest
- Ethan Nwaneri (Arsenal)
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15 years, 271 days old
- Harvey Elliott (Fulham)
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- Matthew Briggs (Fulham)
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ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
Read more from Aya Iskandarani
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
The%20specs
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ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
More coverage from the Future Forum
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
Landfill in numbers
• Landfill gas is composed of 50 per cent methane
• Methane is 28 times more harmful than Co2 in terms of global warming
• 11 million total tonnes of waste are being generated annually in Abu Dhabi
• 18,000 tonnes per year of hazardous and medical waste is produced in Abu Dhabi emirate per year
• 20,000 litres of cooking oil produced in Abu Dhabi’s cafeterias and restaurants every day is thrown away
• 50 per cent of Abu Dhabi’s waste is from construction and demolition
UAE currency: the story behind the money in your pockets
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
