SHUAA launches USD 200 million “Financing Opportunities Fund” and attracts USD 68 million at launch.
SHUAA Capital psc (DFM: SHUAA), the preeminent asset management and investment banking program in the sector announced that it has begun a USD 200 million ‘SHUAA Financing Opportunities Fund’ targeting exceptional situations in the GCC. The fund has drawn a total of USD 68 million in pledges from investors.
Following SHUAA’s new success in the individual account space in using and paying more than USD 250 million to investors and making mid-teen returns of c. 15% in commission to USD 3 billion of structured and increased funding across all collection companies, the company is thrilled to be launching its inaugural dedicated financing fund.
The principal objective of SHUAA Financing Opportunities Fund, a closed-ended fund with a four-year tenor, is to generate revenue yield and protect capital, through a well-identified order incorporating targeted and important advances 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 published by SHUAA in 2020. The firm resumes to attract capital from investors and has raised over USD 140 million in the last 3 months, showing the Company’s strength, expertise and track record In the region.
Jassim Alseddiqi, Chief Executive Officer of SHUAA, said: "Against the backdrop of a growing regulatory and business environment, numerous project deals and assets in liquidity-hit areas are incapable to progress or fulfil certain obligations, particularly due to the difficulties posed by COVID-19.”
“Despite the challenging business conditions for borrowers, SHUAA thinks that there are winning opportunities in the GCC market that will generate relevant risk-adjusted returns for its investors, in key sectors including healthcare, real estate, hospitality, construction and shipping.”
Alseddiqi, added: “Events in the current market environment include short term recapitalisations, growth capital, bridge loans and acquisition financing. SHUAA’s investment team has hence recognised several needs for this type and level of financing in plans across the GCC region and is looking to provide them with innovative alternative properties including last-mile funding, something in which we have happily engaged since the last financial crisis. We look forward to jumpstarting these key projects towards their thriving achievement and continuing to help their future goals as our economy moves into a healing phase."
The ‘SHUAA Financing Opportunities Fund’ investors base is anticipated to include regional and international limited partners, including regional non-banking financial institutions, family offices, investment companies and high net worth qualified individuals (HNWI).
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 guidelines to secure downside protection for our investors. From having run private credit investments through various cycles, we have acquired a deep understanding of evaluating credit risk and ensuring successful exits.”