Abu Dhabi-based investment firm Gulf Capital has signed a deal with Abu Dhabi Commercial Bank (ADCB) to secure a ground-breaking five-year revolving facility of Dh500 million ($136 million).

One of the most active alternative asset managers in the region, Gulf Capital said the fund will help the company finance its growing pipeline of investments across its various business units.

Gulf Capital is focused on investing in private equity, real estate, credit and mezzanine across the region.

The new flexible medium-term revolver will allow the Abu Dhabi firm to leverage its balance sheet and finance its investments as they arise, said a senior official.

Gulf Capital CEO Dr Karim El Solh said, 'The speed of response of ADCB and the innovation and flexibility embedded in the current acquisition financing facility made ADCB the clear choice for us.'

'The medium-term revolving structure permits us to draw down the loan facility when we find suitable investments and allows us to boost Gulf Capital's overall return on equity.'

ADCB, he said, has proven itself as a true reliable banking partner and demonstrated its strong financial commitment, a remarkable endorsement in light of the current difficult economic environment.

'This new substantial facility of Dh500 million, along with our original paid up capital of Dh1.22 billion, positions Gulf Capital as one of the best capitalised investment firms in the region,' he added.

Commenting on the deal, ADCB chief executive officer Ala’a Eraiqat said: “ADCB has enjoyed a strong relationship with Gulf Capital since its inception and our understanding of their business model and investment strategy allowed us to structure a flexible revolver facility that meets their unique business needs.'

Colin Fraser, executive VP and head of Wholesale Banking at ADCB, said: “We are delighted to support Gulf Capital through this financing, as there have not been many deals of this nature concluded in the UAE market before.'

'The deal is unique in that, while serving to achieve the client’s needs and objectives in funding its investments with reasonable flexibility, it is structured in line with best practice for private equity finance,' he explained.

Gulf Capital chief financial officer Christopher Foll said: 'The size and tenor of this new acquisition facility reflects the strong partnership with ADCB and the strength of their balance sheet.'

'This substantial facility establishes a new source of accessible funding for Gulf Capital’s balance sheet and will be used to fund investments in multiple opportunities across our various business units,' he added.-TradeArabia News Service