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