GII Debt Fund-I will focus on sectors such as consumer, healthcare, education, logistics, technology and technology-driven companies in the region, the company said in a statement Tuesday.
The fund will also seek investment opportunities in high-growth Indian companies looking to expand in the GCC and internationally.
“We actively seek companies that are backed by established venture capitalists and work with these companies to provide venture capital debt and grow the business,” said Mohammed Al Hassan, co-founder and co-director. General of GII.
“This represents a new opportunity for our investors to diversify into different high growth asset classes with attractive returns.”
The venture capital ecosystem in the Middle East and North Africa is growing amid the start-up boom, especially in sectors such as technology and digitalization.
Venture capital funding for local start-ups grew 20% annually to more than $2.3 billion in the first three quarters of 2022, putting it on track to potentially top total investment attracted in 2021, according to a report from the Magnitt data platform.
Egypt, the United Arab Emirates and Saudi Arabia retained the top three positions in terms of financing value and number of deals, capturing more than 75% of all investment in the Mena region, it said. -he declares.
Globally, venture debt is a fast growing asset class for companies looking to use capital for team building, working capital and capital expenditure needs. In the United States, the venture debt sector accounts for 15-20% of long-term venture capital investments. The market is so far under-penetrated in the GCC region and India, GII said.
“One of our principles is to provide diverse opportunities, and GDF-I really reflects that as it provides income and growth for our investors,” said Pankaj Gupta, co-CEO of GII.
“GII has developed a robust underwriting approach based on our experience working with high growth companies in both developed and emerging markets.”
In June, GII, which has approximately $3 billion in assets under management, Anglo-Gulf Trade Bank fully acquireda digital trade finance lender, Mubadala Investment Company, for an undisclosed amount.
AGTB is a digital bank licensed by the Abu Dhabi Global Market Financial Services Regulatory Authority, and is described as the world’s first digital commercial bank, GII said at the time.
In May, the company announced its intention to invest nearly $530 million for a majority stake in Saudi healthcare operator Almeswak, as part of its drive to more than triple its assets to $10 billion over the next five years.
Updated: November 29, 2022, 11:01 a.m.