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UAE’s Gulf Capital closes private equity fund after raising $750mn

UAE’s Gulf Capital closes private equity fund after raising $750mn
Gulf Capital has announced closing its third private equity fund after raising $750 million, ahead of the $550-million target it set in January, The National reported.

The Abu Dhabi-based alternative asset management firm said that its GC Equity Partners III fund was launched to raise a minimum of $550 million. However, the firm has had to close the fund ahead of schedule after attracting more than $750 million.

Most of the money comes from international investors seeking lucrative opportunities in the fast-growing Arabian Gulf economies, particularly the UAE.

Gulf Capital CEO Karim El Solh has confirmed that the Company was studying an initial public offering (IPO) among a range of funding options. The firm, which has around 300 shareholders, said they were considering the option.

There have been rumours that Gulf Capital seeks to list its shares on the Abu Dhabi Securities Exchange (ADX); However, El Solh stated that a listing was only one of a number of possibilities, including issuing bonds, raising new private equity and bank borrowings.

“Shareholders enjoy very nice dividends and the shares are already traded over the counter, so we have to decide [if an IPO] is advantageous for them,” the CEO noted, highlighting that the performance of the Company’s second private equity fund, which closed in 2010 and has since delivered a compound 25% return to investors, nearly tripling the value of their original investment.

It is worth mentioning that the Abu Dhabi-based firm has $3.3 billion in assets under management in seven funds and special purpose vehicles. Real estate marks the largest single part of the assets’ split. Gulf Capital has also invested in oil and gas services, in growth sectors such as health and education, as well as sectors with high government involvement.