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13 April 2024

Saudi bank takes stake in HBG Holdings

By Staff Writer

HBG Holdings, the Dubai-based private equity firm, has sold a strategic stake in its management company to NCB Capital Company (NCBC), a subsidiary of the National Commercial Bank of Saudi Arabia.


Under the terms of the deal, which was signed in Bahrain and Dubai, the shareholding will be acquired through Oryx Regional Private Equity Fund, a fund managed by NCBC.

Oryx will become one of the largest shareholders in the HBG management company and will act as an anchor investor in its $200 million (Dh734m) pan-regional private equity fund.


Oryx will also be represented on the board of directors and executive committee of HBG. 

“This deal forms a partnership between the region’s most experienced private equity practitioners on the one hand and its most powerful financial institution on the other. This is definitely a strong alliance in the making and we are excited by the momentum the deal will lend to our ambitious growth plans,” HBG Holdings Chairman Abdallah Y Al Mouallimi said.


In 2006, HBG appointed external consultants to formulate a strategic plan for expanding its private equity business, and as a result of its findings, the HBG started working towards a strategic institutional partnership to bring together the private equity expertise of HBG with the financial muscle and distribution capability of a major financial institution.


The deal reinforces a growing trend of involvement by large scale financial institutions in Middle Eastern private equity, either through wholly owned subsidiaries or in partnership with independent players.


“This partnership positions HBG as a leader in private equity and allows it to look at a wider range of transactions in the region with a partner that can provide investment banking and corporate finance support as well as access to a powerful distribution network,” said the statement.


HBG is currently evaluating a number of deals in the region in consumer, logistics, financial services and infrastructure and expects to invest more than $2bn during its next investment cycle.