NBK Capital Partners announced that it has held the final close for its second mezzanine fund last week. The MENA-focused alternative investment firm secured a total of $16o million for NBK Capital Partners Mezzanine Fund II, reportedly attracting strong demand from institutional investors and family offices.
The new fund will follow the same investment strategy as its predecessor, backing middle-market businesses in consumer-centric sectors in the Middle East and North Africa with mezzanine capital. NBK Capital’s first mezzanine fund achieved top-quartile returns for its investors after backing eight companies of which seven have been fully exited.
“We appreciate the support of our investors, who have identified middle market credit in the MENA region as a place where there are fantastic investment opportunities,” Yaser Moustafa, a Senior Managing Director at NBK Capital Partners said in the statement announcing the close. “NBKCP Mezzanine Fund II provides a well-defined route to such a market with an experienced team and a proven track record. This new pool of capital will be deployed in compelling risk-reward opportunities for our limited partners.”
The fund has already backed Qimam El Hayat, a private K-12 school in Riyadh and Perkon, the market leader in the Turkish payment systems. Historically, NBK Capital Partners has predominantly backed companies based in the Middle East and Turkey through its equity and mezzanine investment vehicles.
Morgan Lewis represented NBK Capital Partners in the establishment of NBK Capital Partners Mezzanine Fund II and Fund administration services are being provided by Maples Fund Services.