NBK Capital Partners exits private debt fund

01/02/2018 05:33 AST

NBK Capital Partners, an alternative investments firm that advises on providing flexible capital to mid-sized companies in the Mena region, has successfully exited its inaugural $157 million private debt vehicle.

Returning a 17 per cent gross Internal Rate of Return (IRR) on investments in the UAE, Saudi Arabia, Kuwait and Turkey, NBK Capital Mezzanine Fund I ranks among the top performing private debt funds in its vintage year.

Raised in 2009, the region's first mezzanine fund - a hybrid of debt and equity financing - was a pioneer for flexible long-term direct lending launched in the wake of the global financial crisis to meet the financing needs of mid-sized firms unable to secure attractive terms with banks constrained by regulatory and structural changes.

The closure of NBK Capital Mezzanine Fund I represents the successful exit of eight investments in the portfolio for NBK Capital Partners, the alternative investments arm of NBK Capital.

Yaser Moustafa, senior managing director at NBK Capital Partners, said: "I am delighted with this milestone, which demonstrates the superior returns that we continue to generate for investors and validates the tremendous opportunity for private debt strategies in the region. It builds on our track record that now totals 17 realizations from 29 investments, the highest number of profitable exits by an alternative investments firm in the region over the past decade. We remain focused on maintaining this level of success for investors across our private equity, private debt and real estate interests."

Headquartered in the Dubai International Financial Centre, UAE - with a presence in Bahrain, Kuwait and Turkey - NBK Capital Partners secured funding from prominent regional endowments, pension funds, family offices, HNWIs and affiliates of NBK Capital for the NBK Capital Mezzanine Fund I.

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