Gulf Capital and Abu Dhabi Commercial Bank (ADCB) have signed today a ground-breaking five-year revolving facility of Dh500 million to help finance Gulf Capital’s growing pipeline of investments across its various business units.
Gulf Capital is one of the most active alternative asset managers in the Middle East with focus on investing in private equity, real estate, credit and mezzanine across the region. The new flexible medium-term revolver will allow the Firm to leverage its balance sheet and finance its investments as they arise.
“ADCB has enjoyed a strong relationship with Gulf Capital since its inception and our understanding of their business model and investment strategy allowed us to structure a flexible revolver facility that meets their unique business needs. We look forward to continuing our close cooperation with Gulf Capital and helping them their franchise enhancement,” Ala’a Eraiqat, CEO of ADCB and a member of the Board, said.
“The speed of response of ADCB and the innovation and flexibility embedded in the current acquisition financing facility made ADCB the clear choice for Gulf Capital. The medium-term revolving structure permits us to draw down the loan facility when we find suitable investments and allows us to boost Gulf Capital’s overall return on equity. ADCB has proven itself as a true reliable banking partner and demonstrated its strong financial commitment, a remarkable endorsement in light of the current difficult economic environment. This new substantial facility of AED500 million, along with our original paid up capital of AED1,225 million, positions Gulf Capital as one of the best capitalised investment firms in the region, allowing us to pro-actively seize investment opportunities as they arise,” Dr. Karim El Solh, CEO of Gulf Capital said.
“We are delighted to support Gulf Capital through this financing, as there have not been many deals of this nature concluded in the UAE market before. The deal is unique in that, while serving to achieve the client’s needs and objectives in funding its investments with reasonable flexibility, it is structured in line with best practice for private equity finance. The deal has been configured through a strong understanding of the client’s business model and will mitigate risk through sectoral caps imposed. We are excited about our partnership with Gulf Capital and its portfolio companies and look forward to taking it to new heights,” Colin Fraser, Executive Vice President and Head of Wholesale Banking at ADCB, said.
“We are delighted with the support we have received from ADCB. The size and tenor of this new acquisition facility reflects the strong partnership with ADCB and the strength of their balance sheet. This substantial facility establishes a new source of accessible funding for Gulf Capital’s balance sheet and will be used to fund investments in multiple opportunities across our various business units,” Gulf Capital’s Chief Financial Officer, Christopher Foll, said.