Global distributes USD12mn to its clients investing in its private equity fund, GOF I
This is the 15th distribution of the fund and is the result of a successful exit and collective cash dividends from Future Kid, and a capital reduction from Gulf Healthcare International (GHI). In February 2019, the fund fully exited from Future Kid achieving a total return of 35% above the company’s value on the fund’s extension date in 2012. The new strategy adopted by Future Kid in 2011 has improved the company’s performance and resulted in a cash distribution worth USD22 million.
During Q3 2019, Gulf Healthcare International, one of the fund’s portfolio companies conducted a second share buyback transaction for the shareholders on a pro rata basis,
Ihsan Sancay, Head of Alternative Asset Management commented: “We continue to deliver our commitments to our clients. We had put in tremendous efforts to build the value in these assets and accessing the right buyers by working closely with the management and other shareholders. We are proud that the private equity funds managed by Global have been consistent in value creation and portfolio exits, which paved the way for constant cash distributions to our clients.”
Ahmed Abdallah, co fund manager of GOF 1 said: “Through an effective involvement and value creation strategies, we were able to grow the portfolio companies and improve operational profitability. With the support and guidance of the board of directors and the management team of Future Kid, we were able to turnaround the company resulting in operational growth and improved financial performance.”
With this distribution, the total amount distributed to clients investing in GOF I reached USD223 million from 25 exits in addition to cash dividends and capital reductions. Private Equity funds managed by Global, which distributed around USD750 million to its investors since inception, have undergone a successful operational turnaround in many of their key investments which had put most of the portfolio companies back on positive growth trajectory. The Private Equity Team has managed 52 exits since inception.
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