Mubasher: Gulf Capital, a company operating in alternative investment across MENA, announced Thursday that it has raised $175 million (AED 644 million) for the first closing of its second credit and mezzanine fund, Gulf Credit Opportunities Fund II.

The Fund targets a final close of $250 million (AED 925 million), with a hard cap of $300 million (AED 1.11 billion).

Karim El Solh, CEO of Gulf Capital, said, “I am particularly delighted by the size of the first closing of our second credit fund as well as by the quality of the regional and global institutional investors that are coming in this first closing. Our first credit fund has delivered a high cash yield and attractive returns and has positioned Gulf Capital as the leading credit and mezzanine asset manager in the Middle East. With this latest closing, Gulf Capital is entering 2016 particularly well-funded with ten funds and investments vehicles across its credit, private equity and real estate divisions. We are fortunate to be in such a strong financial position as one of the best funded investment companies in the Middle East and look forward to securing more investments across the region.”

Fund II will provide bespoke financing solutions to mid-market companies and private equity sponsors operating in the Middle East, North Africa, Turkey and Sub-Saharan Africa. Gulf Credit Partners, the managers of Gulf Capital’s credit funds, will be investing in companies that generate revenues between $25 million and $250 million and operate in growth sectors that are non-cyclical in nature, have experienced management teams, a good track record of financial performance and robust cash flow generation with strong corporate governance practices.