Abu Dhabi's Eshraq Investments, a prominent investment company listed on the Abu Dhabi Securities Exchange (ADX), has unveiled a significant shift in its strategic direction. The company is setting its sights on building a robust direct private equity presence, aiming to propel future growth and transition away from its existing portfolio.
Eshraq's new strategy prioritizes direct private equity investments as its core business model. The company will actively seek high-growth potential enterprises within the UAE and broader GCC region, a market brimming with promising structural growth factors. This focus on direct control aligns with Eshraq's intention to create long-term value.
The investment firm acknowledges the need for a meticulous approach. Eshraq intends to implement a rigorous process for sourcing and screening potential deals. This will ensure a steady flow of high-quality investments and a strategic deployment of capital. The geographical focus, however, will remain consistent. Eshraq will continue to prioritize opportunities within the UAE and the surrounding GCC region.
Eshraq's transition plan also includes the targeted acquisition of one to two high-growth businesses annually. The company anticipates these investments maturing and generating attractive cash flow, paving the way for strategic exits at a later stage.
To bolster its direct investment capabilities, Eshraq is actively seeking to bolster its team. The company plans to recruit fresh talent, including senior investment professionals with expertise in identifying and evaluating promising ventures. This talent infusion is crucial for the successful execution of the new strategy, which is expected to commence immediately.
Eshraq's current portfolio holds a mix of assets. Alongside its planned foray into direct private equity, the company will continue to leverage income-generating assets like minority equity holdings, fixed-income assets, and real estate to achieve portfolio balance and maintain consistent earnings.
The company also outlined plans to manage its legacy assets. This includes developing and implementing transition plans for properties within the existing real estate portfolio and the Goldilocks Fund, currently overseen by SHUAA Capital.
Eshraq's decision to prioritize direct private equity reflects a calculated move towards long-term growth and value creation. By actively seeking high-potential businesses and implementing a well-defined investment strategy, Eshraq seeks to unlock new avenues for success in the dynamic GCC market.