Eastgate Mena direct equity L.P. invests us$40 million in L’azurde
Eastgate Capital Group participates in a consortium to acquire 70 percent of the world’s 4th largest gold manufacturer and Middle East’s leading brand of gold and jewellery
Eastgate Capital Group (Eastgate), the private equity fund management arm of NCB Capital of Saudi Arabia, has made an investment of US$40 million in L'azurde, the leading gold and jewellery designer, manufacturer and distributor headquartered in Riyadh, Saudi Arabia.
Eastgate’s investment was executed as part of a consortium led by Investcorp that also included The National Investor (TNI). As a result of the transaction, the consortium will own 70% stake in the Company alongside Mr. Abdul Aziz Al Othaim, the Company’s founder who will retain 30% stake and will continue as the Chief Executive and Chairman of the business.
Dr. Ghazi Al-Rawi, a Founder and Managing Partner of Eastgate Capital Group, said, “This investment is consistent with the strategy of our Eastgate MENA Direct Equity Fund, which targets investments in high potential companies in resilient sectors and seeks to help these companies become regional champions. Given the full alignment on vision, values, and both business and investment objectives, we are very pleased to join forces on this exciting opportunity with Investcorp, Mr. Al-Othaim and TNI. As part of NCB Group, the largest physical gold bank in Saudi Arabia, and leveraging our team’s deep market understanding and functional expertise, Eastgate is well positioned to contribute to L’azurde’s further growth and success as the undisputed regional champion in the gold jewellery industry.”
This transaction represents the third investment of Eastgate MENA Direct Equity L.P. fund and the second in 2009. Earlier this month, Eastgate announced the investment of US$40 million in Sigma Pharmaceutical Industries in Egypt.
Speaking on behalf of Investcorp, Mr Azmat Taufique, Co-Head of Gulf Growth Capital said, "L'azurde represents a landmark transaction in the Middle East and fullfils one of Investcorp's key objectives of partnering with leading businesses in the region. We are very pleased to have joined forces with Eastgate Capital Group and TNI in leading the transaction."
Eastgate MENA Direct Equity L.P., the core product of the firm, is a Shariah compliant fund focused on growth investments in the more resilient consumer-centric sectors and uses an active value-add investment approach. The Fund focuses primarily on the Saudi Arabian market and selectively seeks attractive investments in other sizable regional economies like Egypt and Turkey. The Fund had a first closing at US$250 million, and is targeting a final size of US$400 million.
Eastgate’s mandate is to source, structure and invest in attractive private equity and real estate opportunities across global emerging markets, with particular emphasis on the Middle East, North Africa, and Turkey. The firm currently has over US$650 million in commitments under management.
About Eastgate Capital Group:
Eastgate Capital Group is the private equity investment arm of NCB Capital, the investment banking, asset management and brokerage subsidiary of the National Commercial Bank of Saudi Arabia. Eastgate’s mandate is to source, structure and invest in attractive private equity and real estate opportunities across global emerging markets, with particular emphasis on the Middle East, North Africa, and Turkey. The firm currently has over US$650 million in commitments under management. Eastgate MENA Direct Equity L.P., the flagship product of the firm, is a Shariah compliant fund focused on growth investments in the more resilient consumer-centric sectors and uses an active value-add investment approach. The Fund focuses primarily on the Saudi Arabian market and selectively seeks attractive investments in other sizable regional economies like Egypt and Turkey. The Fund had a first closing at US$250 million, and is targeting a final size of US$400-500 million. Eastgate Capital Group Limited is incorporated and domiciled in the Dubai International Financial Centre (“DIFC”) and is regulated by the Dubai Financial Services Authority (“DFSA”).
