Nahda Capital Partners Takes First Step in GCC with New Private Equity Fund Registration

Nahda Capital Partners Takes the Initiative in the GCC Investment Landscape

In a significant move to bolster the Gulf Cooperation Council (GCC) investment landscape, Nahda Capital Partners has officially filed for the registration of its inaugural private equity fund. The firm, headquartered in Abu Dhabi Global Market (ADGM), aims to channel its resources into the development of the regional economy by fostering long-term partnerships with local businesses.

The name "Nahda," which translates to "renaissance" in Arabic, embodies the firm’s commitment to renewing and rejuvenating the region's economic landscape. Nahda Capital Partners is focused on creating pivotal alliances that can contribute substantially to enhancing the real economy of the GCC. Their strategy emphasizes support for local entrepreneurs, families, and established institutions, which is crucial in a region ripe for investment and development.

As part of its core strategy, the firm will adopt a control-oriented approach, primarily concentrating on mid-market enterprises. This includes targeting businesses in the UAE, Saudi Arabia, and the larger GCC region that are resilient and founder-led, as well as those experiencing generational transitions or in need of institutional capital to ramp up their operations and expand.

Leadership with Vision

Nahda Capital Partners is spearheaded by Iñigo de Luna, the Founder and Managing Partner, who brings with him an extensive background in private equity and investment banking. The founding team touts an impressive historical track record, having generated an average gross internal rate of return (IRR) of around 36% through varying economic climates.

The firm adopts a majority-investment strategy, partnering closely with business owners and family shareholders. This collaborative approach not only provides capital but also focuses on operational value creation, encompassing professionalization, governance enhancement, and selective growth through buy-and-build strategies. Nahda aims to reshape traditional business models into more structured and scalable formats, enabling significant value addition in the long term.

Strategic Focus Areas

In terms of sector focus, Nahda anticipates expanding its activities in a range of industries such as food production, healthcare, education, and industrial technology. The investment philosophy is deeply rooted in Sharia-compliant principles, emphasizing the acquisition of tangible assets, careful leverage management, and disciplined governance protocols.

Iñigo de Luna underscores that the firm aims to partner with high-quality, mid-market businesses capable of benefiting from sustained investment and nuanced operational support. Despite the fluctuating economic conditions in the region, he expresses confidence in the GCC's enduring potential: "These are difficult days and the priority is safety and de-escalation. However, we view this as a temporary setback rather than a fundamental shift in the promising long-term outlook for the UAE and the broader region."

Fundraising and Future Outlook

Pending regulatory approvals, Nahda Capital Partners anticipates initiating its fundraising efforts shortly, targeting an ambitious goal of approximately $300 million for its first fund. This capital will be pivotal in supporting various businesses in the GCC in realizing their growth aspirations and enhancing their operational capabilities.

About Nahda Capital Partners

Nahda Capital Partners is a private equity platform based in Abu Dhabi, specifically focused on control investments within mid-market businesses across the GCC. The firm’s ethos is to partner closely with founders and family shareholders, aiding organizations through generational transitions, operational enhancements, and regional market expansions. With an unwavering commitment to aligning with Sharia-compliant investment standards, Nahda is well-positioned to effectuate tangible improvements in targeted sectors and contribute significantly to the region's economic development. Subject to regulatory clearance, they are poised to launch their inaugural investment fund from the dynamic landscape of ADGM.