NBK Capital Partners has raised $110 million at the first close of its NBK Capital Partners Mezzanine Fund II.
The final target for the fund has not been confirmed but it is understood that the firm is hoping to raise up to around $200 million. The firm’s first mezzanine fund closed on $160 million and is now fully invested.
NBK claimed demand for the fund has been strong from institutional investors and family offices. It will target mezzanine investments in mid-market companies in consumer-centric sectors including education, healthcare and food & beverage in the MENA region.
The firm says it will focus on companies that benefit from the long-term regional fundamentals of a young and growing population and favourable demand dynamics.
It said a strong pipeline should ensure that the first investment from the fund is made by the end of this month.
Based in Dubai, NBK also has a presence in Kuwait and Turkey. Since the launch of its first fund in 2007, it has made 20 investments and completed 11 exits. Its first fund, which closed in 2009, was the first mezzanine fund in the MENA region.
The latest fundraising is being advised by law firm Morgan Lewis and fund administrator Maples Fund Services.