Gulf Capital Pvt JSC, one of the highest capitalized regional investment companies with an equity base of AED1,225 million, incorporated in Abu Dhabi on May 21st.
Following the final approval of the UAE Ministry of Economy and Planning and the Executive Council of Abu Dhabi, Gulf Capital Private Joint Stock Company was incorporated in Abu Dhabi on May 21st, 2006 at its First General Assembly.
The total equity capital raised was AED1,225 million from 300 regional shareholders, with 60% subscribed by prominent UAE institutional and individual investors and the remaining 40% by other prestigious regional shareholders. Gulf Capital’s private share offering was more than five times oversubscribed, a rare feat for a private placement, highlighting the firm’s unique positioning and solid business model.
Principal institutional backers include the Abu Dhabi Retirement Pensions and Benefits Fund, the UAE General Pension and Social Security Fund, the Qatar General Retirement & Pension Authority, Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Nokhitha Fund, Emirates Insurance Co., Bayan Investment Co. and Kuwait Finance & Investment Co among many others. Al Tamimi & Co acted as the legal adviser on the structuring and incorporation of the Company.
“Gulf Capital was set up with a clear focus: to launch the most dynamic and sophisticated investment firm focused on investing in the Gulf and MENA regions. Our 300 shareholders-partners, directors and professionals all strive towards building a best-in-class institution that shines by international standards. This ambitious goal is backed by one of the largest equity capital base in the industry, a diversified shareholding representing some of the most prestigious and sophisticated investors in the region, a ground-breaking Industry Advisory Board and a world-class team of seasoned professionals”, said Mr. Hareb Al Darmaki, Chairman of Gulf Capital.
Members of the Board of Directors, in adition to Mr. Al Darmaki, include Mr. Suhail Al Mazroui, Mr. Riad Kamal, Mr. Abdul Monem Al Rashed, Mr. Waleed Zahid, Mr. Alaa Erikat, Mr. Ahmed Al Badi and Dr. Karim El Solh.
“The strength of our firm lies in its diversified regional shareholding and we have gone to great length to bring some of the most reputable investors in the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman. In essence, we are seeing here the rise of one of the first truly pan-GCC investment companies with deep regional shareholding which will be key both for deal flow sourcing and regional expansion”, said Mr. Suhail Al Mazroui, Director of Gulf Capital.
On the Private Equity side, the Company’s strategy is to acquire controlling stakes in highly profitable and fast growing companies in select industries throughout the Gulf region and through active ownership, accelerate their growth rates and enhance their profit margin with a view to exiting them profitably in the future. Gulf Capital’s investment objective is to achieve above-average capital appreciation by generating long-term returns to shareholders superior to alternative methods of investing.
In a departure from the norm, Gulf Capital has launched a ground-breaking Industry Advisory Board to advise the Company on transactions in specific industries. “For the first time in the Gulf, we have put together an Industry Advisory Board comprising some of the most illustrious and knowledgeable industry experts to advise us on particular transactions and assist us in managing, restructuring and growing our portfolio companies. As a hands-on investor, Gulf Capital is committed to adding value to its portfolio companies prior to exits. In this approach, Gulf Capital is emulating the best-in-class practice of the leading global private equity players”, said Dr. Karim El Solh, Chief Executive Officer of Gulf Capital.
“Gulf Capital’s pipeline is full of interesting investment opportunities and the firm is in the process of closing four large transactions. The strength of our team is not only in securing transactions but also in structuring and executing successful exits for our investments. Gulf Capital’s team has executed more IPOs than any other institution and has developed a unique expertise in successfully realizing investments. This is key for our investors, as what matters most to them are the exits and the return on investments”, added Dr. El Solh.
“Given its regional shareholding, unique Industry Advisory Board, strong deal flow, deep management team and best-in-class practice, Gulf Capital is poised to raise the bar in the regional private equity scene and position itself as one of the most dynamic and sophisticated regional investment firms,” concluded Mr. Al Darmaki.