The Firm’s history

Arcapita closed KSA Logistics Fund III at SAR 1.8 billion ($500 million), with participation from a leading sovereign wealth fund from the GCC region and other major institutional investors. Arcapita aims to leverage its international expertise to support Saudi Arabia's objectives in becoming a global logistics hub.

Arcapita launched the ARC UK Industrial Portfolio as part of its long-term European strategy, building on a $7 billion global industrial and logistics track record. The acquisition marks Arcapita’s reemergence in UK industries after pausing investments since 2013.

Towards the end of Q1 2022, Arcapita announced the evolution of its vision and values, further reinforcing its status as a global Islamic asset management firm. Promising investors and stakeholders a business approach that is founded on its core values: pioneering, honorable, responsive, and committed. Arcapita’s unwavering dedication to success has seen it expand its values to include a pioneering approach that paves the way for growth and innovation. To maintain an honorable and ethical approach in every part of the business and to pledge itself to being responsive and committed to delivering on their promises.

In 2021, Arcapita Group completed the sale of two portfolio companies, Stratus and NAS Neuron Health Services.

Arcapita Group completed the sale of Stratus, a global leader in brand implementation, serving some of the largest, most recognized brands in the United States, to a leading U.S. middle market private equity firm. Despite the unprecedented economic downturn resulting from the COVID-19 pandemic, Stratus tripled its revenues and EBITDA over the holding period.

Arcapita Group, and Mumtalakat, the sovereign wealth fund of the Kingdom of Bahrain, announced the sale of their stake in NAS Neuron, a leading provider of outsourced medical claims processing services in the GCC, to a leading US based Fortune 100 company. The successful investment has exceeded target returns over a three-year holding period.

The COVID-19 pandemic led the world economy into unprecedented territory. Arcapita, with its well-devised business continuity plan, an international platform, extensive management expertise spanning multiple business cycles and a sound equity-funded balance sheet, worked diligently to minimize the impact of the outbreak on its investments and portfolio companies.

Arcapita Group and Bahrain Mumtalakat Holding Company, acquired approximately 90% equity stake in NAS United Healthcare Services, a Third-Party Administrator (“TPA”) specialized in medical claims management.

Arcapita Group also acquired Stratus (formerly MC Group), the sole nationwide provider of sign management, lighting, and service solutions in the US. Founded in 1953, Stratus provides signage and lighting services to customers across the US through a highly scalable, vendor-managed and asset-light business model.

Arcapita Bank B.S.C.(c) was reorganized under a US chapter 11 restructuring. The reorganization was completed on September 17, 2013, and RA Holding Corp. (with its affiliates, “RA”) was formed to own Arcapita Bank B.S.C.(c) (now renamed RA Holding B.S.C.(c)) and its subsidiaries and affiliates. RA is owned by the creditors under the terms of the chapter 11 reorganization plan.

Arcapita Group Holdings Limited and Arcapita Investment Management B.S.C.(c) were formed in 2013 as part of the new Arcapita group and acquired the use of the name “Arcapita” from RA in 2013. Arcapita Group Holdings Limited is a holding company incorporated in the Cayman Islands and Arcapita Investment Management B.S.C.(c) is licensed by the Central Bank of Bahrain as a Category 1 Investment Firm. Arcapita Group Holdings Limited and its subsidiaries and Arcapita Investment Management B.S.C.(c) (together the “Arcapita Group”) were formed to manage the existing assets of RA as agreed with the creditors of RA, and to pursue new investment business.

As a result of the financial crisis, Arcapita Bank B.S.C(c) was unable to refinance a maturing $1.1 billion financing facility and other liabilities. At the time, Arcapita Bank determined that the best course of action to protect its shareholders, investors and other stakeholders was to file for protection and restructure under the jurisdiction of the courts in the United States.

In 2000, Arcapita Bank acquired Caribou Coffee, a popular international coffeehouse chain with multiple locations across the globe. In 2005, Caribou Coffee Company, Inc. completed an initial public offering (IPO) of its common stock, making Arcapita Bank the first Shari’ah-compliant firm to publicly list a portfolio company on a major stock exchange in the United States.

In 2005, First Islamic Investment Bank and Crescent Capital rebranded to Arcapita. The Arcapita brand was introduced as a step towards building a unified global brand across the firm’s three offices in Bahrain, Atlanta, and London.

In 2006, Arcapita Bank completed the first Shari’ah-compliant venture capital fund in the US, with a target size of $200 million. The fund was launched with the intention to generate long-term capital appreciation through investments in growth and expansion stage companies, with a primary focus on healthcare, information technology and industrial technology sectors.

Fiscal 2008 was Arcapita Bank’s most successful year to date, representing Arcapita’s 10th consecutive growth year.

In 2010, Arcapita Bank moved to its new iconic headquarters located at the very heart of the Bahrain Bay development in Manama, Bahrain. The design of the Arcapita Building features an imposing horizontal glass structure, built and finished to the very highest standards and advanced technologies.

Arcapita Bank was founded by prominent businessmen from the GCC region. The firm commenced its operations in Bahrain in 1997, with the mandate to provide Shari’ah-compliant investments to investors in the GCC. Although many Islamic banks were being formed concurrently, they were mainly retail banks focusing on car and home loans not private equity investments. Financial institutions and the finance industry as a whole, had little to offer investors seeking sophisticated Shari’ah-compliant private equity and real estate investments until the formation of Arcapita Bank.