Fresh from holding the first close for its second generation credit fund, Gulf Capital, one of the Middle East’s most active alternative investment management firms, is partnering with Accra and London-based investment bank, Serengeti Capital, to expand its private debt business to Sub-Saharan Africa. The exclusive arrangement will see Serengeti Capital advising the fund on credit and mezzanine opportunities in the region.
Gulf Credit Opportunities Fund II, which held a first close at $175 million in early January, is targeting a final close of $250 million with a $300 million hard cap. It’s deal focus will be on making investments in companies with strong cash flows operating in non-cyclical growth sectors which are delivering revenues between $25 million and $250 million and which display strength in their management teams, their financial performance metrics and their corporate governance practices. In addition to Sub-Saharan Africa, the fund will look for opportunities in the Middle East, North Africa and Turkey.
The Fund is expected to make between 10 and 12 investments annually across all target regions, ranging between $15 million and $30 million in size. It’s anticipated that its first investments will be made in West Africa before expanding across the rest of the Sub-Saharan region, offering companies and private equity sponsors with growth capital, acquisition finance and buyouts through a variety of debt instruments, including mezzanine finance, preferred equity, convertibles and senior debt.
“Our partnership with Serengeti Capital and our expansion from the Middle East and North Africa into Sub-Saharan Africa is part of our strategy to become one of the leading alternative investment managers in emerging markets,” commented Karim El Solh, Gulf Capital’s CEO. “A large number of our portfolio companies operate today along the new East-West corridor from Asia Pacific and South East Asia to the Middle East and Africa. We look forward to our partnership with Serengeti Capital and to increasing our investments across Africa.”
Gulf Capital is one of the most diversified alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Private Debt and Real Estate, managing over $4 billion of assets across 10 funds and investment vehicles.