GFH creates private equity division

Gulf Finance House, an Islamic investment bank, has created a separate private equity division, to be headquartered in London, and has recruited Joe McGrane from RBS to head it.

Gulf Finance House, an Islamic investment bank, has re-organised its operations into five divisions and hired Joe McGrane as head of European private equity.

Following the re-organisation, GFH will operate five separate divisions – private equity, large project development, wealth management, property fund management and asset management.

The private equity division will invest on a deal-by-deal basis in mid-market companies across the UK. It expects to invest between £50 million and £200 million (€38-€152 million; $98-$397 million) in each transaction, completing two or three deals each year. The bank will finance the deals from its own balance sheet.

McGrane, who will be based in London, said: “We are Sharia-compliant so we will invest in Islamically acceptable companies only; this means no tobacco, alcohol or gambling companies. Other than that, we will be sector-generalist.”

McGrane was previously managing director at Royal Bank of Scotland Development Capital, and has been a director at both 3i and Charterhouse Development Capital.

Founded in 1999, GFH has about $1 billion (€760 million) under management.