ABU DHABI: Gulf Capital, a leading GCC private equity firm, has received capital commitments for its latest private equity fund, GC Equity Partners II, of about AED1.75 billion (US$476 million or RM1.66 billion.)

In a statement yesterday, Gulf Capital said this was the first ever regional private equity fund to derive the majority of its investors (more than two thirds) from international markets including the United States, Europe, Asia and the Gulf Cooperation Council (GCC) countries.

It said the fund raising of its latest buyout flagship fund, which was launched in the second half of 2008 in conjunction with Credit Suisse Alternative Investments, had a target of AED2 billion.

“More than 60% of GC Equity Partners II investors are from outside the GCC region,” said Muhannad Qubbaj, managing director of business development at Gulf Capital.

“They include some of the most prominent sovereign wealth funds, pension funds, insurance companies and financial institutions in Asia, Europe, the US and the GCC, many of which have studied the region and decided to invest in it for the first time through Gulf Capital’s flagship fund.”

Gulf Capital said it had committed more than AED550 million  to the fund. It added that a high subscription rate had been recorded three months ahead of the fund’s expected closing at the end of July 2009, with 85% of the capital committed to date.

Dr Karim El Solh, chief executive officer of Gulf Capital, said: “This strong traction and level of commitment is a powerful endorsement of the Gulf Capital franchise, at a time when raising capital has been extremely difficult for almost any type of investment.”

The fund’s strategy is to buy late-stage control stakes in established, market leaders in the GCC, with the target industries in oil and gas, power and water, healthcare, education, logistics and other services.

“The Gulf region is still enjoying significant growth and we expect it will lead the global recovery along with China and India,” Karim said.

This article appeared in The Edge Financial Daily, June 4, 2009.