Property Finder Secures Debt Financing to Repurchase Shares

Dubai's leading property portal, Property Finder, has secured $90 million in debt financing to repurchase shares from a key investor, BECO Capital. The move signals Property Finder's strategic direction as it looks to potentially greater autonomy and future funding opportunities.

BECO Capital, the first venture capital firm established in the United Arab Emirates, played a critical role in Property Finder's early funding rounds. The repurchase of BECO Capital's stake signifies a shift in Property Finder's ownership structure. Financial details of the acquired stake were not disclosed.

Property Finder obtained the debt financing from Francisco Partners, a renowned private equity firm headquartered in the United States and the United Kingdom. This transaction marks Francisco Partners' initial investment of this nature within the UAE.

J. P. Morgan acted as financial advisor to Property Finder throughout the transaction, while White & Case provided legal counsel. The share buyback and debt financing were also supported by Property Finder's remaining institutional investor, General Atlantic, a leading global growth equity firm.

Industry analysts suggest that Property Finder's decision to reacquire shares reflects its confidence in the company's future growth trajectory. The Dubai property market has shown signs of recovery in recent months, driven by a surge in foreign investment and a steady increase in residential property prices. This positive trend is expected to benefit online property portals like Property Finder.

Property Finder's repurchase of shares could also pave the way for future funding opportunities. By reducing its reliance on venture capital firms, Property Finder might be better positioned to explore an initial public offering (IPO) or other financing avenues in the future.

While the company has not made any official announcements regarding an IPO, the debt financing maneuver suggests Property Finder is strategically aiming for more independent control over its financial future. The repurchase of shares from BECO Capital indicates a potential shift towards a more public ownership structure in the long run.

With Dubai's property market regaining momentum, Property Finder's strategic financial moves position the company to capitalize on the positive market conditions and potentially pave the way for future growth and expansion.

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