NBK Capital (the “Firm”) announced today that it completed a successful exit of its investment in Aras Cargo (“Aras” or the “Company”), a leading CEP (Courier, Express, Parcel) provider resulting in a significant return for the fund. The investment was made through the firm’s pioneering NBK Capital Mezzanine Fund I, the MENA region’s first fund dedicated to providing alternative financing solutions to growth companies.
Aras is the second largest CEP provider in Turkey and has approximately 35% market share. The Company has a nationwide network comprised of 27 hubs, 20 district offices, 750 stores, and handles over 200,000 shipments per day.
Amjad Ahmad, Senior Managing Director at NBK Capital stated, “the investment in Aras provided the necessary financing for growth and corporate development during a tough economic period. We are proud that our partnership with the Aras family and the Company’s management resulted in attracting a strong equity investment from a quality institutional investor such as Iş Private Equity.” Iş Private Equity, the private equity arm of Turkiye Işbank, Turkey’s leading banking institution recently made a significant equity investment in Aras.
Ahmet Tataroglu, Executive Director continued, “our ability to provide flexible and creative financing solutions to growth companies helped Aras achieve significant milestones in the past several years and we are confident the Company will continue to deliver on its goals.”
NBK Capital Mezzanine Fund I, managed by NBK Capital as part of its Alternative Investments Group, is a USD 157.0 million fund providing mezzanine financing to companies in the MENA region. Mezzanine financing is relevant for a variety of transactions including leveraged buyouts, refinancing, recapitalization and growth financing. The Fund provides mezzanine financing for private equity-backed transactions as well as mid-market companies.