NBK Capital’s Alternative Investments Group, a leading private equity and mezzanine fund manager in the MENA region, has completed the sale of its 38% stake in Nayifat Instalment Company to Falcom Financial Services. The investment was made through NBK Capital Equity Partners Fund I, the Firm’s private equity fund focused on acquiring minority and majority stakes in growing middle market companies across the MENA region.
Nayifat is a leading Islamic consumer finance company in Saudi Arabia providing loans to consumers and small to medium-sized companies. During NBK Capital’s holding period, the company grew into one of the largest and most reputable consumer finance companies in Saudi Arabia with a loan book of over SAR 1.4 billion. Nayifat recently became one of the first consumer finance companies to obtain a license from the Saudi Arabian Monetary Agency (SAMA).
Amjad Ahmad, Senior Managing Director and Head of Alternative Investments at NBK Capital stated, “NBK Capital was one of the first private equity firms to invest in the Kingdom’s growing consumer financing sector. In the last five years, we have worked closely with management and other shareholders to transform Nayifat into an efficient financing company with an extensive countrywide network providing credit to underserved consumers and SME businesses.”
Samer Khalidi, Executive Director continued, “Our operational focus and strong support has helped the company’s management team significantly grow and increase market share while maintaining the sector’s leading return on equity.”
NBK Capital Equity Partners Fund I, managed by NBK Capital’s Alternative Investments Group, is a USD 250.0 million private equity fund focused on acquiring minority and majority stakes in growing middle market companies in the MENA region. The Fund specializes in an active investment approach to create long-term sustainable value through strategic, operating, financial and corporate governance enhancements.