Khaleej Times, Wednesday, Nov 30, 2022 | Jamadi Al Awwal 6, 1444
Gulf Islamic Investments launches a $100m Shariah-compliant debt fund
Emirates:
GDF-I will focus on supporting high growth companies in resilient sectors such
as consumer, healthcare, education, logistics, technology, and technology
enabled businesses in the GCC region and high growth Indian companies looking to
expand in the GCC and internationally.
”We actively seek companies that are backed by established venture capital
investors and work with these companies to provide venture debt and build the
business. This presents a new opportunity for our investors to diversify in
different high growth asset classes with attractive returns,” Mohammed Al
Hassan, co-founder and co-CEO of Gulf Islamic Investments, said.
Total VC funding activity reached record level of $2.6 billion in 2021 in GCC
region with UAE and KSA leading with major reforms and policy innovations
presenting growth opportunity for home grown and international businesses.
Globally, venture debt is an important asset class for high growth companies to
support the growth between two equity raises. Companies typically use the
capital for team building, working capital, and capex investments. In US, the
venture debt industry is c.15-20 per cent of venture capital investments over
long term. The market is underpenetrated in GCC and India region.
“One of our principles is to provide diverse opportunities and GDF-I truly
reflects that as it provides income and growth to our investors by supporting
high growth companies reaching next stage. GII has developed a robust
underwriting approach based on our experience working with high growth companies
across developed and emerging markets,” Pankaj Gupta co-founder and co-CEO of
Gulf Islamic Investment, said.