Amwal Capital Partners Launches Shariah-Compliant Private Credit Fund for GCC Businesses
Amwal Capital Partners, a DIFC-based asset management firm, has announced the launch of its Shariah-compliant private credit fund aimed at providing flexible financing solutions to companies in the GCC region. This new fund seeks to address a critical funding gap for mid-market businesses in the Gulf.
Key Details
The newly launched fund is named the Amwal Capital Partners Private Credit Fund (APACPCF). It is managed by Amwal Capital Partners and is structured to be fully Shariah-compliant, adhering to Islamic finance principles. The primary focus of the fund is the Gulf Cooperation Council (GCC) market.
Bridging the Financing Gap
The fund is designed to cater to the specific financing needs of businesses in the GCC that may find conventional bank financing restrictive or lack access to public debt markets. Private credit offers an alternative source of capital that can be structured to meet unique corporate requirements, providing greater flexibility compared to traditional lending or equity financing.
Fund Strategy and Target Market
The APACPCF will target mid-market companies across various sectors within the GCC. The fund's strategy involves providing structured private credit solutions, which can include senior secured debt, mezzanine financing, and preferred equity. The fund manager will focus on identifying companies with strong growth potential and robust cash flow generation capabilities.
Implications for the Region
The introduction of a dedicated Shariah-compliant private credit fund adds a valuable dimension to the financing landscape in the GCC. It provides an additional, tailored funding option for companies seeking growth capital or liquidity, potentially stimulating economic activity and supporting the expansion of the mid-market segment which is a significant driver of regional economies.
About Amwal Capital Partners
Amwal Capital Partners is an asset management company based in the Dubai International Financial Centre (DIFC). The firm focuses on providing investment management services and developing financial products catering to the needs of clients in the region.
Looking Ahead
The launch of the APACPCF signals Amwal Capital Partners' commitment to developing sophisticated, Shariah-compliant financial instruments that address specific market needs in the GCC. The fund's success will likely depend on its ability to effectively deploy capital and support the growth trajectories of its portfolio companies.
Source: Zawya