Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announced today the launch of the $200 million Arcapita Ventures I, a venture capital fund, to GCC investors. This is the first fund that offers Gulf-based investors access to Islamically approved venture capital investments from the US.
Arcapita and its affiliates will invest up to $50 million in Arcapita Ventures I, which will have a duration of ten years. It will be managed out of Arcapita’s office in the US, from which it has been sourcing private equity, real estate and asset based transactions for the past decade. The fund will focus on growth and expansion stage companies in the healthcare, information technology and industrial technology sectors. Arcapita aims to be the lead investor in companies that have large potential markets, a proven management team and an existing, revenue-generating customer base.
As a demonstration of its commitment to the new business, Arcapita used its own capital to complete the first three investments in the fund. To date, the fund has invested a total of $21.5 million in Cardiomems, a medical device company in Atlanta, in Alloptic, a California-based company whose technology optimizes voice, video and data communications, and in Prenova, a provider of energy management technology based in Georgia.
Arcapita Ventures I is a natural extension to Arcapita’s product range, which aims to provide high quality, Islamically approved, alternative investments for sophisticated GCC investors. “It is clear from our conversations with our investors that there is a high level of interest in venture capital as an asset class” said Atif A. Abdulmalik, Arcapita’s Chief Executive Officer. “Given the attractive environment for venture capital in the United States, and our ability to leverage the resources of our US office, the States was the obvious region from which to launch our venture capital business.” It is expected that whilst the initial investments will be made in the US market, Arcapita Ventures I may also consider opportunities in Europe and Asia in due course.
To manage the fund, Arcapita has built a team of experienced and respected individuals with impressive track records in the venture capital business and extensive networks in the target sectors. The venture capital team is led by John Huntz, a veteran of the private equity and venture capital business, who has served on the Board of Directors of the US National Venture Capital Association. Mr. Huntz noted, “Perhaps the most important factor in the success of a venture capital enterprise is the quality of the individuals responsible for sourcing and then analyzing investment candidates. So I am very pleased to be working alongside a group of highly talented individuals, who have long experience and proven records of success in venture investing.” To support this management team, Arcapita has also assembled an advisory panel, consisting of CEOs, industry experts and other senior advisors, each with valuable networks into the fund’s target sectors.
This latest extension to Arcapita’s product offering comes shortly after the bank announced its largest corporate transaction to date, with the €620 million acquisition of Paroc, a Finland-based manufacturer of technically advanced insulation products. To date, Arcapita has completed 56 transactions out of its offices in Manama, London and Atlanta, with a total transaction value of over $12.5 billion.
About Arcapita
Headquartered in Bahrain with offices in Atlanta and London, Arcapita’s four principal lines of business are corporate investment, real estate investment, asset-based investment and venture capital. To date, the Bank has completed 56 transactions with a total value exceeding $12.6 billion and has an equity capital base of approximately $800 million. Arcapita’s mission is to provide innovative and distinctive investment opportunities that generate superior risk-adjusted returns and adhere to Islamic principles.
Full details of Arcapita can be found at www.arcapita.com
