The National Investor, an Abu-Dhabi based investment firm, has announced the successful completion of its exit from Depa, one of the world's largest interior contractors and a Nasdaq Dubai and London Stock Exchange listed company.
According to the announcement, this exit has yielded a cash-on-cash return of 2.8x on the fund's investment and an internal rate of return (IRR) of 61%. It is worth mentioning that they still retain an investment into Depa at the corporate level. Also, TNI's Chairman, Abdullah Mazrui is the Chairman of Depa, and his private office Mazrui Holdings retains a strategic stake in Depa. Orhan Osmansoy is the CEO of TNI.
The National Investor is listed in the Middle East Investors Directory with the code OR53
More details follows:
The National Investor's (TNI) Growth Capital Fund I, a MENA focused buyout and growth capital, private equity fund, today announced the successful completion of its exit from Depa Ltd., one of the world's largest interior contractors and a Nasdaq Dubai and London Stock Exchange listed company. This exit has yielded a cash-on-cash return of 2.8x on the Fund's investment and an internal rate of return ('IRR') of 61%.
TNI GCF initially invested in Depa in early 2006, when it was still a private company. The Fund led the investment for the first institutional round of private capital for the Company. At that time, Depa had last twelve months (LTM) revenues of approximately AED 666 million, which grew significantly, both organically and through acquisitions, reaching peak revenues of AED 2,689 million in 2009.
TNI retains a strategic investment into Depa at the corporate level, which is distinct from the TNI GCF's exited investment. Also, TNI's Chairman, Abdullah Mazrui is the Chairman of Depa, and his private office, Mazrui Holdings retains a strategic stake in Depa.
Orhan Osmansoy, Chief Executive Officer of TNI, Board Director for Depa, and Senior Investment Committee Member of TNI GCF, commented: "One of the benefits of a full service platform such as TNI is that our relationship with our investee companies is multi-tiered. Our funds create successful exits for themselves, and TNI GCF's ability to generate such level of returns despite the difficult economic environment highlight the resilience and appeal of our private equity franchise. At the same time, our strategic relationship with Depa continues and is stronger than ever."
On the back of its strong performance, Depa made an Initial Public Offering (IPO) in April 2008, which received strong interest and raised significant additional capital to fund the company's expansion and acquisition.
Mohannad Sweid, CEO of Depa, commented: "We are obviously proud of our achievements at Depa, but we are also delighted to see our private equity investor partners, such as TNI GCF, realizing successful exits. This validates the investment thesis for the private equity funds, and strengthens the case for additional private equity investment into companies such as Depa that are homegrown regional champions but with a global profile and outlook."
TNI GCF Fund has made five investments across the Middle East, North Africa and South Asia (MENASA) region, in consumer goods manufacturing, power transmission and specialty contracting, and has wholly or partially exited two of its investments.
TNI, in partnership with KIPCO Asset Management Company K.S.C. (KAMCO) recently announced a successful first close of a jointly managed private equity fund, focused on special situation opportunities, the Etqaan Private Equity Opportunities Fund.
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