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Global Opportunistic Fund I exits investment in Banawi

Global Capital Management’s Global Opportunistic Fund I has exited its investment in Banawi Industrial Group.

Banawi, a diversified industrial group based in Jeddah, Saudi Arabia, was founded in 1957 by Sheikh Ali Al-Banawi as the first commercial printing and paper-based packaging company in the GCC region.

The company is currently active in the packaging and specialty chemicals sectors with four subsidiaries, Banawi Container Group, Ashwa Technologies, Henkel Technologies Egypt and Henkel Technologies Middle East.
 
Global Opportunistic Fund I, a pre-IPO private equity fund managed by Global that invests in late stage private equity opportunities within the GCC, invested in Banawi in late 2006 through a capital increase aimed at financing Banawi’s expansion plan.

The exit was done through a buyback arrangement with Banawi’s founding shareholders.

Rajiv Nakani (pictured), managing partner at Global Capital Management, says: “We are proud to have supported the development of an exemplary firm like BIG over the past few years and to have witnessed the substantial growth and diversity it achieved during the same period. Despite the difficult market conditions, we managed to close the Banawi Industrial Group exit transaction in a profitable and timely manner. GOF I is currently assessing various exit opportunities for other portfolio companies which might be taking place in the second half of 2010.”

Sheikh Hussein Al Banawi, chairman and chief executive officer of Banawi, adds: “Having GOF I as a partner, represented by Global as the fund manager, for the past three years has provided great value to our group at all levels. Global’s leadership believed in the BIG story and saw an example of how regional private equity fund managers, such as Global, can play a vital role and add value as growth capital financiers in the GCC and the wider Middle East region. The active contribution Global made within the institution of our board of directors and its various committees has provided tremendous support to our management team’s plans. This has resulted in BIG achieving substantial growth levels, be it towards strategic expansion into new markets or territories or extension of our business activities.”

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