Eastgate Capital Group, the private equity fund management arm of NCB Capital of Saudi Arabia, has made an investment of USD40m in L’azurde, a gold and jewellery designer, manufacturer
Eastgate Capital Group, the private equity fund management arm of NCB Capital of Saudi Arabia, has made an investment of USD40m in L’azurde, a gold and jewellery designer, manufacturer and distributor headquartered in Riyadh, Saudi Arabia.
Eastgate’s investment was executed as part of a consortium led by Investcorp that also included The National Investor.
As a result of the transaction, the consortium will own a 70 per cent stake in the company alongside Abdul Aziz Al Othaim, the company’s founder, who will retain a 30 per cent stake and will continue as the chief executive and chairman of the business.
Dr Ghazi Al-Rawi, a founder and managing partner of Eastgate Capital Group, says: ‘This investment is consistent with the strategy of our Eastgate Mena Direct Equity Fund, which targets investments in high potential companies in resilient sectors and seeks to help these companies become regional champions. Given the full alignment on vision, values, and both business and investment objectives, we are very pleased to join forces on this exciting opportunity with Investcorp, Mr. Al-Othaim and TNI. As part of NCB Group, the largest physical gold bank in Saudi Arabia, and leveraging our team’s deep market understanding and functional expertise, Eastgate is well positioned to contribute to L’azurde’s further growth and success as the undisputed regional champion in the gold jewellery industry.’
Azmat Taufique, co-head of gulf growth capital at Investcorp, adds: "L’azurde represents a landmark transaction in the Middle East and fulfils one of Investcorp’s key objectives of partnering with leading businesses in the region. We are very pleased to have joined forces with Eastgate Capital Group and TNI in leading the transaction."
The transaction represents the third investment of the Eastgate Mena Direct Equity Fund and the second in 2009. Earlier this month, Eastgate announced the investment of USD40m in Sigma Pharmaceutical Industries in Egypt.
