Abu Dhabi-based Eshraq Investments has announced the launch of a renewed corporate strategy under which it will focus on directly held private equity investments, complemented by cash generation from minority equity positions, fixed income assets and real estate, to balance the portfolio and support consistency in earnings.

Over a five-year period, with acquisitions expected to be executed as early as 2024, Eshraq will build direct private equity capabilities and exposure, while transitioning legacy portfolio assets.

Fahad Al Qassim, Chairman of Eshraq, said: “We are pleased to unveil Eshraq’s long-term strategy for growth and shareholder value creation, through which we intend to become a leading GCC investment company focused on direct private equity exposure, with a portfolio that is complemented by investments in income-generating assets.

“On the successful execution of our strategy, we expect our investment proposition will be characterised by a well-diversified portfolio in growing sectors across the GCC, enabled by a strong balance sheet that offers significant headroom to invest in new and existing assets, driven by a highly experienced board following the recent appointment of new members in 2023, and a management team who are ideally suited to sourcing and executing high quality investment opportunities.”

Mohamed Al Hashimi, Chief Executive Officer of Eshraq, said: “All at Eshraq are excited to be launching our new strategy, through which we are taking control of our destiny.

“Today is a first step in a long-term strategic shift, something which both our board and management believe is overdue, where we will maintain a clear focus on directly held, regional private equity assets.

“At the same time, we are actively evaluating the best options for transitioning our legacy assets, including certain properties in our real estate portfolio and the future holdings and management of the Goldilocks Fund.

Eshraq will prioritise direct private equity investments as its core business, seeking opportunities with high growth potential to create long-term value, with a focus on efficient sourcing and screening of potential deals to ensure high quality, steady deal flow and the strategic deployment of capital.

Its geographical focus will remain unchanged, with investments to be focused on the UAE and wider GCC region, a highly attractive market with strong structural growth drivers.  

Income Generating Assets

Eshraq will continue to selectively invest in income generating minority equity stakes, fixed income assets and real estate to generate reliable cash flows and balance its investment portfolio. This will be complementary to the core private equity portfolio, with a focus on stable dividend paying stocks and leveraging the existing real estate portfolio to deliver consistent returns through market cycles.

Eshraq will strategically acquire minority stakes in companies operating in sectors complementary to, or outside its core investment areas.

Meanwhile, management intends to maintain a more selective portfolio of income generating commercial and residential real estate assets, with a focus on stable, cash-generating properties that offer an attractive counterbalance to the dynamic nature of the core private equity portfolio.

The execution of Eshraq’s refreshed strategy will be made possible by certain key operational enablers. Management will focus on enhancing the Company’s human capital, including the hiring of skilled senior investment professionals.

The Company will make updates to the market with respect to the execution of its strategy in all future quarterly earnings announcements and presentations, and will announce other material events, including M&A activity, on an ad hoc basis as required. – TradeArabia News Service