Abu Dhabi - Arabstoday
Abu Dhabi-based Gulf Capital, one of the region\'s major alternative asset management firms with about $1 billion (Dh3.67 billion) worth of assets under management said Tuesday its venturing into credit business under which a $250 million to $300 million credit fund will be launched later this year following the regulators\' approval. The fund will focus primarily on providing liquidity and growth capital for regional companies and acquisition finance for private equity firms in the Middle East and Turkey. \"The fund has a ten-year maturity period and a five-year investment period. The targeted investors are sovereign wealth funds, insurance companies, pension funds and large family-owned businesses,\" Karim Al Solh, Chief Executive Officer of Gulf Capital, told a news conference in the capital. Gulf Capital will anchor the fund with a capital commitment of $75 million over the investment period. \"One-third of the investment in the fund will be made by Gulf Capital, while two-thirds of the investment will be made by third-party investors,\" said Al Solh. \"We expect to generate an annual return of 15 per cent.\" \"The fund carries medium risk and is appealing from a risk-return perspective,\" he added. Al Solh also said the net asset value of the fund would be declared on a semi-annual basis. Gulf Capital said the new credit business will fill an acute gap in the market for Mena financing by offering credit solutions to corporate and private equity investors as they grow the value of their businesses. The credit fund \"Gulf Trading Partners\" will invest in a wide range of opportunities such as private equity-backed acquisitions and growth capital for companies where debt finance is an attractive alternative to equity. Gulf Capital said investments in corporate loans and bonds will also be considered, thereby covering the entire debt spectrum. From / Gulf News