Abu Dhabi’s Gulf Capital Plans $300M Credit Fund

Jun 28 2011 | 11:03am ET

Abu Dhabi-based alternative asset manager Gulf Capital is planning to launch a $250-300 million credit fund by the end of 2011, providing growth capital to firms in MENA and Turkey.

The Gulf Credit Partners fund will be domiciled in the Caymans and regulated by the Central Bank of the UAE and will target returns of 15% per annum, reports the Khaleej Times. Gulf Capital will be the primary investor in the fund—which will invest in loans, bonds and convertibles—seeding it with up to $75 million.

Christopher Baines, who has joined the firm to manage the new fund, told a media roundtable the new fund “will fill an acute gap in the market for MENA financing by offering credit solutions to corporate and private investors as they grow the value of their businesses,” reports the paper.

Baines said that, unlike traditional asset-based lenders, the financing provided by Gulf Credit Partners could be based on the cash flows generated by the borrower:

“As such, the financings will be flexible using various structures to meet borrowers’ need including longer maturities and more deferred repayment dates than those typically seen in traditional lending.”

The new vehicle is part of Gulf Capital’s plan to increase its AUM to $1 billion in two years.

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