Arcapita Posts Strong Results and Completes Over $250 Million in New Deals During Fiscal Year 2019

October 7, 2019

Generated total revenues of $54.6 million and net income of $21.9 million
Completed five transactions with a total transaction value in excess of $250 million
MANAMA, Bahrain, October 7, 2019 – Arcapita, a leading global Shari’ah compliant investment firm, announced today its financial results for the twelve months ended June 30, 2019 (FY 2019).

Arcapita delivered strong results in FY 2019 with revenues of $54.6 million and a net income of $21.9 million, representing 44% and 76% growth over the previous fiscal year, respectively. This positive performance was driven by the placement of transactions completed during the year and gains on the firm’s investment portfolio.

Arcapita’s total equity as of June 30, 2019 grew to $237.9 million, representing an 8% increase year-on-year, and the firm’s balance sheet investments grew by 16% to reach $245.5 million.

The firm was primarily focused on sourcing transactions in the United States during FY 2019 given its strategy of growing its assets under management (AUM) globally, and increased investor appetite for US investments. Overall, Arcapita completed four US transactions and one transaction in the GCC, for a total transaction value of over $250 million. These included two industrial real estate portfolios in the US, an industrial real estate portfolio in the UAE, and two bolt-on private equity investments in the US.

Abdulaziz Hamad Aljomaih, Chairman of the Arcapita Group, commented: “We are very pleased to report our positive results for FY 2019. The GCC’s investment landscape was impacted by a challenging macroeconomic environment that carried through from last year. Despite this, we have continued to source transactions in sectors where we have built considerable expertise over the past two decades, including the industrial, logistics, and business services sectors. We are also actively looking at new asset classes to expand into to meet the needs of our clients and diversify our offerings. Our success highlights our commitment to all of our stakeholders, and as always, we are immensely grateful for their continued support.”

Commenting on the results, Atif A. Abdulmalik, Founding Partner and CEO, said: “We take a client-centric approach to investing and aim to provide our clients with unique investment opportunities that are compliant with Islamic principles at a global scale. Over the past year, we expanded our US and GCC investment teams and strengthened other divisions in order to facilitate our growth. This will enable us to continue to solidify our global presence amidst an evolving global economic landscape. We have set ambitious targets for the upcoming fiscal year and are well-positioned to continue providing innovative investment opportunities and delivering strong returns to our stakeholders.”

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