NBK doubles money as fundraising looms

Kuwait-based NBK Capital continues to successfully realise investments, following its sale of Aras Cargo in December with the sale of Saudi Arabian group Hanco for a 2x return as the firm prepares to launch its next fundraising.

NBK Capital has generated a return of more than two times its invested capital by selling its 40 percent stake in Jeddah-based company Hanco to existing shareholders in a deal valuing the business at $140 million.

The exit comes as the firm reportedly prepares to launch a new fund with a $300 million to $350 million target. Amjad Ahmad, senior managing director at the firm, told reporters the firm planned to begin fundraising “in the next month or so”. The firm could not be reached for additional comment.

With a fundraising looming, the recent exits will serve to reassure investors of the firm’s ability to generate returns.
NBK realised its investment in Turkish courier company Aras Cargo in late December, and is understood to be pursuing a number of other disposals. Ahmad told reporters NBK planned to exit its 20 percent holding in Turkish food and beverage group Kilic Deniz via an initial public offering later this year, for example.

The Kuwaiti buyout group invested in Hanco, a fleet leasing and car rental group, in 2008. Since then, NBK said the company had experienced record growth, doubling its fleet size and revenues and becoming the second largest player in the Saudi market in the process.

The investment was made using capital from NBK Capital Equity Partners Fund I, a $300 million Middle East and North Africa-focused vehicle raised in 2006.

Law firm King & Spalding and HSBC advised NBK on the sale process.