Arcapita completes over $250m in new deals during FY 2019

Arcapita completes over $250m in new deals during FY 2019
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Abdul Aziz Hamad Aljomaih, chairman of the Arcapita Group.
Arcapita completes over $250m in new deals during FY 2019
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Atif A. Abdulmalik, founding partner and CEO.
Updated 09 October 2019

Arcapita completes over $250m in new deals during FY 2019

Arcapita completes over $250m in new deals during FY 2019

Arcapita, a global Shariah-compliant investment firm, has announced its financial results for the 12 months ended June 30, 2019 (FY 2019).

Arcapita delivered strong results in FY 2019 with revenues of $54.6 million and a net income of $21.9 million, representing 44 percent and 76 percent growth over the previous fiscal year, respectively. This positive performance was driven by the placement of transactions completed during the year and gains on the firm’s investment portfolio.

Arcapita’s total equity as of June 30 grew to $237.9 million, representing an 8 percent increase year-on-year, and the firm’s balance sheet investments grew by 16 percent to reach $245.5 million.

The firm was primarily focused on sourcing transactions in the US during FY 2019 given its strategy of growing its assets under management (AUM) globally, and increased investor appetite for US investments. Overall, Arcapita completed four US transactions and one transaction in the GCC, for a total transaction value of over $250 million. These included two industrial real estate portfolios in the US, an industrial real estate portfolio in the UAE, and two bolt-on private equity investments in the US.

Abdul Aziz Hamad Aljomaih, chairman of the Arcapita Group, said: “We are very pleased to report our positive results for FY 2019. The GCC’s investment landscape was impacted by a challenging macroeconomic environment that carried through from last year. Despite this, we have continued to source transactions in sectors where we have built considerable expertise over the past two decades, including the industrial, logistics, and business services sectors.”

Atif A. Abdulmalik, founding partner and CEO, said: “Over the past year, we expanded our US and GCC investment teams and strengthened other divisions in order to facilitate our growth. This will enable us to continue to solidify our global presence amidst an evolving global economic landscape. We have set ambitious targets for the upcoming fiscal year and are well-positioned to continue providing innovative investment opportunities and delivering strong returns to our stakeholders.”