Instrata Capital will identify, structure and manage investment products that are unique within the region today. While maintaining a broad view of investment opportunities in the GCC and MENA, Instrata Capital will focus initially on private equity investment in sectors including utilities, transportation, and social and industrial infrastructure. Within the first three years of operation, Instrata Capital expects to have approximately US$1.0 billion of funds under management invested in a portfolio of regional companies and projects.
The region’s infrastructure sector is among the fastest growing, with the GCC countries alone projected to spend over US$545 billion on infrastructure development over the next ten years. Such rapid development is being facilitated by high fiscal surpluses, the corporate investment required for the expansion of many industrial and processing companies, as well as the need for governments to meet the demands of the region’s fast growing population for access to a broad range of services. These factors, coupled with increasing opportunities for private sector participation in infrastructure development, make this a time of unprecedented opportunity for regional and international companies as well as privately managed infrastructure projects in which Instrata Capital intends to invest.
Among Instrata Capital’s founding shareholders are prominent GCC financial institutions and investors. These include Kuwait Investment Company (KIC), the first and largest investment company in Kuwait, majority owned by the Kuwait Investment Authority (KIA), as well as Sage Capital Management Group (Sage), a Bahrain based management and business administration consultancy involved in the oversight of a broad portfolio of investment holdings on behalf of its shareholders in such industries as: Financial Services, Hospitality & Hotel Management, Consumer Goods Manufacturing as well as other services-related industries.
Commenting on the announcement, Chairman of KIC, Mr. Bader Nasser Alsubaiee, said,
“Today represents a milestone for Instrata Capital as we establish the foundations upon which we can capitalize on investor demands for innovative and alternative investment products within the strong regulatory environment provided by the Central Bank of Bahrain.”
“Alongside Sage and other investors, we have created a unique platform through which we can offer new and compelling investment opportunities. Instrata Capital will initially provide investors, who do not have access to the specialist skills necessary to evaluate, structure and arrange direct infrastructure investments, with regional infrastructure investment products supported by a highly experienced investment team. Infrastructure investment offers strong potential for growth and superior returns as well as effective portfolio diversification. We are confident that Instrata Capital is well positioned to maximize the opportunities that exist in the GCC and MENA infrastructure sector and to provide significant value to shareholders, clients and the companies and projects in which it will invest.”
Instrata Capital will work in conjunction with KIC in the development and distribution of its investment offering. KIC has a long track record of providing regional investors with distinctive investment opportunities and believes there is strong demand among its client base for products in this niche asset class.
Similarly, Sage’s extensive network of business relationships and contacts in relevant sectors throughout the GCC and MENA will complement the activities of Instrata Capital and its efforts to identify and develop superior investment opportunities in the infrastructure sector going forward.
Instrata Capital will soon hold the first meeting of its founding shareholders, at which time it intends to formally appoint a Board of Directors and senior management team.
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