Gulf Capital Announces the Successful Sale of Reach Employment Services for Over 2x Its Original Investment
Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, announced today the full exit from its portfolio company, Reach Employment Services, the leading manpower outsourcing company in the UAE, generating a return of over two times its original investment. The sale of Gulf Capital's 80% stake in Reach Employment Services, in a structured management buyout, represents a complete divestment from the company.
Gulf Capital worked closely with the Reach Employment Services management team to transform the business from a single city, single sector focused company into a highly diversified operation with over 150 clients operating in a number of industries across the public and private sectors in the UAE. The aggressive expansion and diversification programme enabled Reach to achieve an impressive growth in the number of clients, the entrance into a number of new sectors and the doubling of the company's profitability. During Gulf Capital's ownership period, Reach increased its net profits by 110%.
Dr. Karim El Solh, Chief Executive Officer of Gulf Capital and Chairman of Reach Employment Services, said: "We have enjoyed working and partnering with the talented team at Reach Employment Services and embarking together on this exceptional growth journey. The strategy of expanding the company aggressively across new sectors and geographies has firmly positioned Reach today as the leading manpower outsourcing company in the UAE. This investment cements Gulf Capital's track record of backing local companies and transforming them into market leaders across emerging markets. Reach today has a remarkable franchise and a strong management team and is well positioned to continue its impressive growth trajectory in the future."
Mr. Malik Melhem, Chief Executive Officer of Reach Employment Services, said: "Gulf Capital proved to be an outstanding, high value-add partner as we embarked on our journey together and transformed Reach into the market leader it is today. Gulf Capital was instrumental in shaping the company's new growth strategy and in helping us to install the infrastructure and processes required to enable us to grow and scale rapidly. With our strong foundation and leading franchise, we are well positioned to continue our growth in the future."
Mr. Muhannad Qubbaj, Senior Managing Director, Gulf Capital, concluded: "We were particularly pleased to have partnered with Mr. Melhem and his management team on this exciting transaction. The remarkable growth of Reach and the subsequent successful exit of this investment highlights Gulf Capital's strong operational involvement in its portfolio companies and its ability to generate attractive returns to its investors."
Gulf Capital is a leading alternative asset management firm. Its investors are focused primarily on investing capital in the GCC region.
Incorporated in Abu Dhabi in 2006 as a Private Joint Stock Company, Gulf Capital was established with a capital base of AED 1.225 billion (USD 330 million) from 300 of the most prestigious institutional and individual investors in the Gulf. Gulf Capital investors are focused on acquiring sizeable and majority stakes in highly profitable and rapidly growing companies within a select number of fast-growing industries in the GCC region.
Gulf Capital recently expanded its alternative asset management platform by entering into the real estate development arena in a joint venture with the Related Companies, the most prominent U.S. real estate developer, to form Gulf Related.
With its private equity and real estate initiatives, Gulf Capital is today one of the largest alternative asset managers in the GCC.
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