Gulf Capital credit fund completes first Middle East financing

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Gulf Capital’s new regional credit business has completed its first financing for a local company with a $25m investment in energy solutions business SES FZCO.

SES provides temporary and medium-term energy solutions catering for the increasingly power-hungry emerging markets in the Middle East, Africa and South East Asia.

Gulf Credit Partners (GCP) provides financing facilities for private equity acquisitions and growth capital for small and medium-sized companies in the MENA region through its Gulf Credit Opportunities Fund.

The firm said its investment in SES represented a milestone for itself and the wider industry at a time when credit for SMEs from traditional financing institutions was tough, tight and sometimes non-existent.

SES, said it would use the investment to strengthen its market position and expand its operating footprint in existing and new strategic markets.

GCP co-head Walid Cherif said, “This first transaction for the fund represents our strategy to support leading companies with solid track records and strong growth prospects.

“Mezzanine and structured debt presents a degree of flexibility generally unavailable in the region, which is both timely and extremely valuable to our clients.

“It also provides an alternative form of financing in a variety of situations, including private equity acquisitions as well as company loans, as in the case of SES.”

Fellow co-head Christopher Baines said, “The energy sector possesses tremendous growth potential, and we are delighted to be associated with SES, a strong and credible provider of power generation solutions.”

“SES is well positioned to provide much needed power supply to an industry that suffers from a structural demand supply imbalance.

“Our fund is off to a very positive start with a solid pipeline of transactions in healthcare, education, consumer services, and oil & gas servicing.

“We feel very confident that we can deliver attractive risk-adjusted returns to the investors in our ground breaking credit fund.”

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