Pioneering GCC financial sector fund returns 3.5 times capital

‘We returned to investors more than three times their capital in just over six years, equating to an internal rate of return of 22 per cent per annum,’ says Ali al Shihabi, founder and chief executive of Rasmala Investments.

‘This achievement over a prolonged period of tremendous volatility in regional markets and in an asset class that had hardly existed in this region before the launch of this fund is something Rasmala is justifiably proud of.’

Having established, managed and successfully paid off what may have been the first formal private equity fund targeting the GCC countries, Rasmala regards itself as one of the pioneers of the asset class in the region. ‘This has given us practical insight and experience which we will bring to bear in our private equity activities going forward,’ al Shihabi says.

‘The GCC economies are experiencing tremendous growth, the markets are continuing to open up to foreign investment and regulatory reform is progressing. This environment will provide Rasmala with the opportunity to play an ever-increasing role in private equity by restructuring businesses to maximise shareholder value, or helping companies build scale to withstand upcoming regional and global competitors.

‘Rasmala will continue to undertake private equity transactions on a deal-by-deal basis, and is also planning to launch, by year end, two sector-focused private equity funds, in partnership with prominent regional industry operators.’

Rasmala, which has operating subsidiaries in Riyadh and London, currently manages a total of eight funds in regional and global markets alongside activities that include investment banking and brokerage.