Gulf Capital has raised $175 million for the first closing of a new credit fund, and aims for a final close of $250 million, the Abu Dhabi-based private equity firm said on Thursday.
The fund, Gulf Credit Opportunities Fund II, expects to make up to 12 investments of $15 million to $30 million each during its 10-year life. A credit fund structures its investments as private debt rather than equity.
Gulf Credit Partners, which manages Gulf Capital’s funds, will invest in companies generating annual revenues of between $25 million and $250 million in the Middle East, Africa and Turkey.
The new fund will be Gulf Capital’s second credit fund. The first closed in 2013 at around $221 million, and is currently over 90 percent invested in some eight companies. Gulf Capital handles over $4 billion of assets across 10 funds and investment vehicles.