#Abu Dhabi #United Arab Emirates #Private Equity #Nahda Capital

Nahda Capital Partners: A New Era in Private Equity

Introduction

In a significant move within the financial sector, Nahda Capital Partners, a newly established private equity platform, has applied for the registration of its inaugural fund in the prestigious Abu Dhabi Global Market (ADGM). This initiative marks a pivotal step as the firm aims to foster lasting partnerships and stimulate regional economic development, concentrating on supporting local entrepreneurs, families, and institutions.

Company Overview

Founded with a mission resonating with the meaning of its name, "Nahda"—which translates from Arabic to renaissance or revival—the company epitomizes a commitment to rejuvenating the local economy through strategic investments. Led by Iñigo de Luna, the founder and managing partner, Nahda Capital is poised to deploy a control-oriented private equity strategy primarily focused on the Gulf Cooperation Council (GCC) countries, including the United Arab Emirates (UAE) and Saudi Arabia.

Investment Strategy and Focus

Nahda Capital Partners aims to target stable, founder-led, and family-owned businesses that stand to benefit from the region's structural growth and ongoing institutionalization. The firm is particularly interested in companies navigating generational transitions or seeking institutional capital and operational support for their forthcoming expansion phases within the GCC. The focus sectors for investment include:

1. Food Production and Distribution
2. Healthcare
3. Education
4. Industrial Technology

These areas are viewed as resilient segments of the economy, essential for supporting sustainable growth and development in the region.

Experienced Leadership

The founding partners bring a wealth of international experience in private equity and investment banking, showcasing an impressive track record that has consistently delivered a gross internal rate of return (IRR) of approximately 36% over multiple economic cycles. This proven expertise reinforces the firm's strategic approach as it seeks advantageous opportunities for investors while contributing positively to the local economy.

Approach to Value Creation

Nahda Capital will employ a majority investment strategy, emphasizing partnerships with founders and family shareholders. The operational value creation model will focus on:

• - Professionalization: Enhancing business practices and operational efficiency.
• - Strengthening Governance: Implementing robust corporate governance frameworks.
• - Selective Buy-and-Build Expansion: Strategically acquiring and integrating businesses to amplify growth.

This structured approach aims to facilitate the long-term success of its portfolio companies, ensuring they are well-prepared to thrive in an increasingly competitive marketplace.

Commitment to Responsible Investing

A unique aspect of Nahda's investment approach is its alignment with Sharia-compliant investment principles. This entails focusing on tangible assets, prudent debt utilization, and disciplined corporate governance, ensuring that all investment activities adhere to ethical standards and contribute positively to the social and economic fabric of the region.

Outlook and Fundraising Plans

Pending regulatory approval, Nahda Capital Partners plans to commence fundraising in the upcoming weeks, targeting an initial fund volume of approximately $300 million. The firm is dedicated to forging high-quality partnerships with mid-sized companies across the GCC, ensuring they receive the long-term capital and operational support necessary for sustained growth.

Iñigo de Luna commented on the current economic climate, stating, "While we are experiencing a challenging time, our focus remains on security and de-escalation. We view the present situation as a significant but temporary shock, not a shift in the long-term trajectory of the UAE and the region. Our conviction remains firm that the GCC countries will structurally continue to be vital hubs for business development and long-term capital provision."

Conclusion

Nahda Capital Partners is poised to contribute meaningfully to the GCC's economic landscape through targeted investments and collaborations with industry leaders. As it prepares to launch its inaugural private equity fund, the firm embodies a modern approach to private equity—one that not only aims to generate returns but also to uplift the local economy and its communities. This strategic initiative promises to set a precedent for future investment endeavors in the region, reflecting a deep commitment to sustainable growth and development.