Bahrain Investment Firm Arcapita Completes $100m Fundraising

Bahrain-based Islamic investment firm Arcapita has completed a $100 million fundraising from new and existing shareholders in the Gulf just over a year after it emerged from Chapter 11 bankruptcy.

The money will help Arcapita to make investments in the Gulf region as well as in international markets including United States, Asia and Europe, it said in a statement on Tuesday.

Arcapita went through the Chapter 11 bankruptcy process after struggling to meet a $1.1 billion debt obligation in the wake of the global financial crisis. It completed its restructuring in September 2013.

The firm aims to benefit from a rebound in private equity business in the Gulf asset values recover and deal flow returns.

In April, for example, a consortium of Gulf-based investors including Fajr Capital and Arab Petroleum Investment Corp (APICORP) agreed on a $500 million deal to acquire Dubai-based oilfield firm National Petroleum Services.

Other deals in the works include private equity firm Abraaj Group’s efforts to take a majority stake in Saudi fast-food chain Kudu. Also, Kuwait Food Co, better known as Americana, is a potential target for private equity investors.

Following the fundraising, Arcapita’s shareholder base has expanded to include sovereign wealth funds, institutional investors, high-net worth individuals and family offices from across the Gulf, it said.

Arcapita already has an investment portfolio worth around $3 billion and it will also offer asset management and advisory services.

The firm’s net income was approximately $10.1 million during the fiscal year ended June 30, 2014, it said.