Funds managed by US-based HarbourVest Partners have invested approximately $300 million in five companies controlled by Arcapita Bank, a leading international investment firm headquartered in Bahrain.

HarbourVest has acquired minority interests in five Arcapita portfolio companies and has committed follow-on capital in support of growth strategies at these companies, said a statement.

Arcapita and HarbourVest have created a new fund to effect this transaction, with Arcapita continuing to manage the portfolio. 

“This transaction is important to Arcapita for two reasons. It provides liquidity that will allow us to be active in our pursuit of new transactions. It also commences our first relationship with a significant US-based institutional investor,” said Atif Abdulmalik, chief executive officer of Arcapita.

“This transaction verifies Arcapita’s credentials with global institutional investors. It will allow us to accelerate our strategic plan of adding traditional GP/ LP funds alongside our existing deal-by-deal model.”

The transaction with HarbourVest follows Arcapita’s recent completion of a $200 million loan facility with Standard Chartered Bank, and adds considerable strength to the Arcapita balance sheet. “We now have a solid platform from which we can make new investments as the transaction environment improves, and appetite from our investors returns,” added Abdulmalik.

“This is a compelling opportunity for us to become partners with Arcapita as they continue to develop the high quality portfolio they have constructed.  We are pleased that Arcapita recognized HarbourVest’s deep experience and selected us as their partner of choice for generating liquidity from their private equity portfolio holdings,” said John M Toomey, a managing director of HarbourVest.  – TradeArabia News Service