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SHUAA Capital, an asset management and investment banking platform in the region, announced that it has launched a US$200 million "SHUAA Financing Opportunities Fund" targeting special situations in the GCC. The fund has already attracted a total of US$68 million in commitments from investors.
Following SHUAA’s recent success in the private credit space in deploying and returning in excess of $250 million to investors and generating mid-teen returns of c.15 percent in addition to $3 billion of structured and raised funding across all portfolio companies, the company is excited to be launching its first dedicated financing fund, a SHUAA press statement said on Sunday.
The key objective of SHUAA Financing Opportunities Fund, a closed ended fund with a four-year tenor, is to generate income yield and preserve capital, through a well identified mandate covering targeted and strategic investments in senior, mezzanine and unitranche Sharia-compliant financing for corporates and developers operating in the GCC region.
SHUAA Financing Opportunities Fund is the fourth fund to be announced by SHUAA in 2020. The firm continues to attract capital from investors, and has raised over $140 million in the last 3 months, demonstrating the company’s strength, expertise and track record In the region.
Commenting on the launch of the new fund, Jassim Alseddiqi, CEO of SHUAA, said, "Despite the challenging market conditions for borrowers, SHUAA believes that there are attractive opportunities in the GCC market that will generate appropriate risk-adjusted returns for its investors, in key sectors including healthcare, real estate, hospitality, construction and shipping."
Alseddiqi added that opportunities in the current market environment include short term recapitalisations, growth capital, bridge loans and acquisition financing. SHUAA’s investment team has hence identified several needs for this type and level of financing in projects across the GCC region and is looking to provide them with innovative alternative investments including last-mile funding.
"We look forward to jumpstarting these key projects towards their successful completion and continuing to support their future goals as our economy moves into a recovery phase," he noted.
The SHUAA Financing Opportunities Fund investors base is expected to include regional and international limited partners, including regional non-banking financial institutions, family offices, investment companies and high net worth qualified individuals.
Mustafa Kheriba, Deputy Chief Executive Officer and Group Head of Asset Management of SHUAA Capital, said, "The Fund is targeting mid-teen returns in the private debt market with stringent underwriting criteria to ensure downside protection for our investors. From having managed private credit investments through various cycles, we have developed a deep understanding of evaluating credit risk and ensuring successful exits."
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