Gulf Credit Opportunities Fund II closed at over $250m
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Gulf Capital, one of the largest alternative investment firms in the Middle East, has reached the final close of its second private debt and mezzanine fund, Gulf Credit Opportunities Fund II, over its target cover of $250m (AED925m).
Gulf Capital, one of the largest alternative investment firms in the Middle East, has reached the final close of its second private debt and mezzanine fund, Gulf Credit Opportunities Fund II, over its target cover of $250m (AED925m).
Gulf Credit Opportunities Fund II is an actively managed fund that will invest in a diversified portfolio of mezzanine, convertible debt and preferred equity issued by privately-owned mid-market companies across defensive sectors and geographies in the Middle East, Turkey and Africa region.
The Fund invests in private credit transactions originated and underwritten by Gulf Capital, and is the company’s tenth investment vehicle since its founding in 2006.
Dr. Karim El Solh, CEO of Gulf Capital, said: “Private debt in the region is becoming an attractive asset class for investors seeking a consistent, high cash yield. Investors recognise the value of our proprietary sourcing and active investment approach to generate absolute, risk-adjusted returns that Gulf Capital’s private debt fund has been able to achieve irrespective of the business cycle.”
Gulf Credit Partners, the manager of Gulf Capital’s private debt business, sourced commitments for its second-generation fund from Sovereign Wealth Funds (SWFs), international institutional investors, regional insurance companies, foundations, and family offices.
A significant number of investors in the prior fund made new and increased commitments to Fund II, which also attracted many new investors.
The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in developing countries, raised its commitment to Fund II to $25m, up by 25% from its previous commitment to Fund I.
Other repeat investors increased their commitment by up to 50%.
“We are particularly pleased with the quality of the institutional investors backing our second private debt fund and by the fact that the investors in our first fund decided to increase their allocations and back our second fund,” El Solh said.