2008 has been an extremely exciting year for the GFH Venture Capital division and has already witnessed some key announcements. In accordance with GFH’s reputation for innovation, the VC team carefully researched opportunities that would match products to specific market needs and achieve the overriding goal of delivering the rare value propositions and exceptionally high returns inherent in all GFH initiatives.
To this end, in February of 2008, the VC team were pleased to announce the creation of First Energy Bank (FEB), the only investment bank of its kind offering intelligent finance specific to the needs of the energy sector clients. Given GFH’s solid credentials in the energy sector through their series of Energy Cities, FEB marks logical extension of their experience but VC projects are not limited simply to the energy business.
The construction boom across the MENA region has resulted in serious shortfalls in key building materials. Cement is among these and accordingly, following heavy due diligence in consultation with experienced industry partners, GFH announced the creation of a new cement company that will become one of the largest in the Middle East in a deal with an end value of approximately US$ 2 billion.
Most recently, we were delighted to announce our intention to create a new regional steel producer that will focus on addressing the serious domestic shortfall in the supply of steel in construction. With an estimated deal value of US$ 5 billion, HadeedMENA will be one of the largest producers across the GCC, North Africa and even parts of India, negating the current local practice of sourcing critical steel volumes from neighbouring markets such as Turkey.
The VC team has achieved much already but we look forward to the creation of many more high value investment opportunities that leverage qualified market demand to offer exceptionally high returns.
GFH’s Venture Capital (VC) employs a philosophy that comprises industry experts and GFH relationships to identify market opportunities and create unique value propositions. It is highly flexible where as the first institutional investor it has the freedom to work through the entire business cycles of its portfolio companies.
GFH’s VC strategy is focused on identifying and capitalizing on market gaps and discontinuities creating venture opportunities. Leveraging our team and partners’ experiences with leading local and international companies, we apply best practices from a broad range of markets which include: Infrastructure, Technology, Energy, Banking, Hospitality, Education and Healthcare.
Core activities consist of deal sourcing, deal structuring, and deal early stage management, VC investments is focused into various lines including industrial, technological and financial sectors. Range of transactions offered previously was in the range of US$ 300~600mn.
Below are a list of funds that we have successfully launched.
Injazat Technology Fund
Rawaj Holding Company
The Royal University for Women
Oman Development Company
First Energy Bank
Cemena
HadeedMENA
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