Dubai – NBK Capital Partners has completed the realization of its mezzanine investment in Dem Pharmaceutical. The mezzanine investment provided the necessary funding to launch new products and secure better terms from suppliers to expedite the growth of the company. This is the fifth successful realization for NBK Capital Mezzanine Fund I, the MENA region’s first credit fund providing mezzanine financing to growing middle market companies.
Established in 1993, Dem Pharmaceutical is a Turkey-based importer and marketer of niche pharmaceutical products including blood products, hospital antibiotics, and hematology/oncology drugs that are used to treat life-threatening conditions. The Company has adopted the strategy of avoiding large therapeutic segments with intense competition and focusing on relatively small/niche segments that are overlooked by large players. Dem has a portfolio consisting of more than 25 original and generic drugs and a solid pipeline of new drugs that are expected to be launched over the next several years.
Amjad Ahmad, CEO of NBK Capital Partners commented, “We have repeatedly provided flexible, long-term financing to middle market companies during periods of rapid growth allowing them to exploit market opportunities”, he added, “Dem effectively utilized the mezzanine facility to expand its product portfolio and improve margins positioning the Company as one of the strongest players in its sector “.
NBK Capital Partners continues to seek new opportunities to finance companies in need of growth capital while fund raising for its next mezzanine fund. The firm expects to launch the next fund during 2015. “The investment environment continues to look compelling given the tight financing market for SME’s in the MENA region”, Ahmad stated. He continued, “Our next fund will continue to provide investors access to an attractive segment of the market through a proven instrument with robust risk-adjusted returns.”