Eastgate Capital Group, the private equity fund management arm of NCB Capital, has invested $40 million in Riyadh-based L'azurde, the leading gold and jewellery designer and manufacturer.

Eastgate’s investment was executed as part of a consortium led by Investcorp that also included The National Investor (TNI).

As a result of the transaction, the consortium will own 70 per cent stake in the Company alongside Abdul Aziz Al Othaim, the Company’s founder who will retain 30 per cent stake and will continue as the chief executive and chairman of the business.

'This investment is consistent with the strategy of our Eastgate Mena Direct Equity Fund, which targets investments in high potential companies in resilient sectors and seeks to help these companies become regional champions,' said Dr Ghazi Al-Rawi, a founder and managing partner of Eastgate Capital Group.

'As part of NCB Group, the largest physical gold bank in Saudi Arabia, and leveraging our team’s deep market understanding and functional expertise, Eastgate is well positioned to contribute to L’azurde’s further growth and success as the undisputed regional champion in the gold jewellery industry.'

This transaction represents the third investment of Eastgate Mena Direct Equity LP fund and the second in 2009.  Earlier this month, Eastgate announced the investment of $40 million in Sigma Pharmaceutical Industries in Egypt.

Eastgate Mena Direct Equity LP, the core product of the firm, is a Shariah compliant fund focused on growth investments in the more resilient consumer-centric sectors and uses an active value-add investment approach. 

The Fund focuses primarily on the Saudi Arabian market and selectively seeks attractive investments in other sizeable regional economies like Egypt and Turkey. The Fund had a first closing at $250 million, and is targeting a final size of $400 million.

Eastgate currently has over $650 million in commitments under management.-TradeArabia News Service