Arcapita (Ofer Abarbanel online library)

Arcapita Group (“Arcapita“) founded in 1997, is an originator of investments in private equity and real estate assets which comply with Sharia principles. Headquartered in Manama, Bahrain, Arcapita also has offices in Atlanta, London, and Singapore.[12]

The firm serves a group of investors in the Middle East region and Southeast Asia. Investors include investment firms, family offices, high net-worth individuals, and a sovereign wealth fund.[12] Arcapita completed over 80 investments in the United States, Europe, the Middle East, and Asia for a total transaction value exceeding $30 billion.[13] The board of directors contain nine members, mainly from the Gulf Cooperation Council. Members are chairs, previous chairpersons, or current Chief Executive Officers of sovereign wealth funds or investment firms.[14]

Portfolio

Private equity

Arcapita acquires interest in midsized companies with an emphasis on the United States, Europe, the Middle East and Asia.

Arcapita’s portfolio contains 14 active and 61 exited investments. Selected past investments include:[15]

  • Viridian Group – a leading independent energy company operating across Ireland – Acquired in 2006, exited in 2016.[16]
  • Freightliner Group Limited – a UK rail logistics company – Acquired in 2008, exited in 2015.[17]
  • Church’s Chicken – a quick-service chicken restaurant chain – Acquired in 2004, exited in 2009.[18]
  • PODS – provider of portable storage and moving solutions for residential and business customers. Acquired in 2007, exited in 2015.[19]
  • Tensar – a provider of site construction solutions – Acquired in 2005, exited in 2014.[20]
  • Jill Acquisition, LLC – retailer of women’s apparel, accessories and footwear – Acquired in 2011, exited in 2015.[21]
  • Caribou Coffee Company, Inc. – an international retail coffee business – Acquired in 2000, exited in 2011.[22]
  • South Stafford – water utility company that supplies water in the English Midlands – Acquired in 2004, exited in 2007.[23]
  • Roxar – an independent technology services company, dedicated to developing solutions to optimize reservoir production for the global oil and gas industry – Acquired in 2006, exited in 2007.[24]

Real estate

Arcapita acts as principal of real estate investments. The firm’s senior management has completed transactions worth $15 billion of real estate investments. Arcapita focuses of the following sectors: industrial and logistics assets, self-storage, residential and senior living.[25] Arcapita currently has 10 real estate investments under its management, and 26 prior investments.[12] Selected past real estate investments include:

  • ARC Real Estate Income Fund – a joint venture with Al Rajhi fund to acquire logistics and retail properties – Vintage year 2010, exited in 2015.[26]
  • Arcapita US Senior Living Yielding IV – joint ventures with Sunrise Senior Living to acquire assisted living properties in the United States. Vintage years 2005, exited in 2015.[27]
  • Riffa Views – joint venture with Bahrain International Golf Course Company to a golf course residential community – Vintage year 2004, exited in 2014.[28]
  • Arcapita Asian Industrial Yielding I – joint venture with Mapletree Investments Pte Ltd, to acquire industrial properties in Singapore. Vintage year 2008, exited 2010.[29]
  • Mutlifamily I – joint ventures with Archstone-Smith to acquire apartment complexes in the United States. Vintage year 2000, exited in 2005.[30]
  • Mutlifamily II – joint ventures with Archstone-Smith to acquire apartment complexes in the United States. Vintage year 2000, exited in 2005.[30]
  • Bahrain Bay – a mixed-use waterfront development – Vintage year 2005.[31]

History

1997–2002

Arcapita was founded in 1997 by prominent GCC businessmen.[32] During that time, Islamic banking started to gain popularity, but the industry lacked Shari’ah compliant investment opportunities. Arcapita’s Shari’ah compliant model was created offering private equity and real estate alternative investments.[32] Arcapita’s first exit was Computer General Incorporated in December 2000. Computer General was a global provider of telecommunications mediation systems.[33]

2003–2007

In 2003, Arcapita opened its London office to handle private equity and real estate investments in the United Kingdom and Continental Europe.[34] In the year that followed, Arcapita acquired Church’s Chicken, a quick-serve chicken restaurant chain, based in the United States.[35] In 2005, First Islamic Bank, Crescent Capital Inc. and Crescent Capital Europe rebranded to Arcapita to unify their global brand across three offices in Atlanta, Bahrain, and London.[36]

2008–2012

Arcapita recorded a performance of $360 million in fiscal year 2008,[37] and extended their geographical presence by opening an office in Singapore that would handle investments in Asia.[38] In 2010, Arcapita moved to its new headquarters in Bahrain Bay.[39]

2013–2017

In 2013, Arcapita completed its restructuring which was initiated in 2012.[40] This restructure was due to the effects of the world economic crises that lead Arcapita to file for Chapter 11.[41] A year later, Arcapita raised a new equity capital from shareholders to fund its growth strategy.[42] In 2017, Arcapita along with Mumtalakat Holding Company, the sovereign wealth fund of the Kingdom of Bahrain, acquired a controlling interest in NAS United Healthcare Service, making it Arcapita’s first private equity investment since the capital raise.[43]

Compliance with Shari’ah

Every investment made by Arcapita and its subsidiaries is approved by a four-member Shari’ah advisory board. In accordance with Islamic Shari’ah law, the company does not invest in any businesses which offer credit or charge interest, or any other product that conflicts with Shari’ah law.[44] According to representatives of the company, the Shari’ah advisory board does not make decisions about the financial merits of investments, and does not play a role in hiring or promotion of employees.

References

  1. ^ Jump up to:ab c d e “Arcapita Group Holdings Ltd”. www.bloomberg.com. Retrieved August 19,2018.
  2. ^“Arcapita Ventures”. crunchbase.com. Archived from the original on 2014-06-01. Retrieved August 19, 2018.
  3. ^“Arcapita”. bahrainbay.com. Retrieved August 19, 2018.
  4. ^“Atif Abdulmalik”. arcapita.com. Retrieved August 19, 2018.
  5. ^“Hisham Al Raee”. arcapita.com. Retrieved August 19, 2018.
  6. ^“Martin Tan”. arcapita.com. Retrieved August 19, 2018.
  7. ^“Mohammed A. Muiz Chowdhury”. arcapita.com. Retrieved August 19, 2018.
  8. ^“Arcapita Investment Management B.S.C. Closed”. zawya.com. Retrieved August 19,2018.
  9. ^“Arcapita Investment Management US Inc”. bloomberg.com. Retrieved August 19,2018.
  10. ^“Arcapita Pte. Limited”. bloomberg.com. Retrieved August 19, 2018.
  11. ^“ARCAPITA INVESTMENT ADVISORS UK LIMITED”. beta.companieshouse.gov.uk. Retrieved August 19, 2018.
  12. ^ Jump up to:ab c “Terms of Service Violation”. www.bloomberg.com. Retrieved 2018-09-03.
  13. ^“Arcapita – Mumtalakat”. Mumtalakat. Retrieved 2018-09-03.
  14. ^“Our Board”. arcapita.com. Retrieved August 28, 2018.
  15. ^“Arcapita Group Holdings Ltd”. www.bloomberg.com. Bloomberg. Retrieved 2018-08-30.
  16. ^“Arcapita lines up €1bn Viridian Group sale”. The National. Retrieved 2018-09-03.
  17. ^“Arcapita sells freightliner for $800 million”. www.tradearabia.com. Retrieved 2018-09-03.
  18. ^Editorial, Reuters. “Arcapita to sell Church’s Chicken to Friedman Fleischer”. U.S. Retrieved 2018-09-03.
  19. ^“Gulf Industry Online – Arcapita to sell PODS for over $1 billion”. www.gulfindustryonline.com. Retrieved 2018-09-03.
  20. ^“Tensar Corporation Acquired by Castle Harlan | Tensar International”. www.tensarcorp.com. Retrieved 2018-09-03.
  21. ^“Arcapita sells big US apparel group J.Jill”. www.tradearabia.com. Retrieved 2018-09-03.
  22. ^“Privately held German firm bags Caribou Coffee for $340 million”. Star Tribune. Retrieved 2018-09-03.
  23. ^Editorial, Reuters. “Arcapita sells South Staffs water to Alinda”. U.K. Retrieved 2018-09-03.
  24. ^“Arcapita Sells Roxar AS for $370 Million”. Arab News. 2007-07-02. Retrieved 2018-09-03.
  25. ^Report, Staff (2016-01-18). “Arcapita acquires $85m real estate portfolio”. GulfNews. Retrieved 2018-09-03.
  26. ^Editorial, Reuters. “Bahrain’s Arcapita and Saudi’s Al Rajhi Capital exit real estate fund”. U.S. Retrieved 2018-09-03.
  27. ^Editorial, Reuters. “Bahrain’s Arcapita sells US portfolio for $630 mln”. U.S. Retrieved 2018-09-03.
  28. ^“Bahrain: Riffa Views releases homes”. Al Bawaba. 2005-12-14. Retrieved 2018-09-03.
  29. ^“Arcapita announces acquisition of US$1.3 billion Singapore real estate portfolio”. Al Bawaba. 2008-07-03. Retrieved 2018-09-03.
  30. ^ Jump up to:ab “Arcapita sells real estate portfolios for $300 Million”. Al Bawaba. 2005-05-09. Retrieved 2018-09-03.
  31. ^Laufs, Wilfried (2008-01-01). “‘Top to Bottom’ Construction – Arcapita Headquarters at Bahrain Bay”. IABSE Congress Report. 17. doi:10.2749/222137908796293587.
  32. ^ Jump up to:ab Report, Staff (2005-03-02). “First Islamic Investment Bank renamed”. GulfNews. Retrieved 2018-09-03.
  33. ^“Terms of Service Violation”. www.bloomberg.com. Retrieved 2018-09-03.
  34. ^“Crescent Capital Investments | Crunchbase”. Crunchbase. Retrieved 2018-09-03.
  35. ^“Church’s Chicken Changing Hands in Estimated $300M Deal”. World Property Journal. Retrieved 2018-09-02.
  36. ^Report, Staff (2005-03-02). “First Islamic Investment Bank renamed”. GulfNews. Retrieved 2018-09-02.
  37. ^“Arcapita income soars 90pc to $362m”. www.tradearabia.com. Retrieved 2018-09-02.
  38. ^“Bahrain’s Arcapita to widen footprint in Asia”. www.asiaone.com. Retrieved 2018-09-02.
  39. ^“Bahrain Bay”. www.bahrainbay.com. Retrieved 2018-09-02.
  40. ^Editorial, Reuters. “Bahrain’s Arcapita eyes new investments after first Gulf Chapter 11”. U.S. Retrieved 2018-09-02.
  41. ^Vizcaino, Bernardo. “Bahrain’s Arcapita exits chapter 11, plans asset sales”. U.S. Retrieved 2018-09-02.
  42. ^Editorial, Reuters. “Bahrain’s Arcapita to raise capital as $1.1. bln loan looms”. U.S. Retrieved 2018-09-02.
  43. ^Editorial, Reuters. “BRIEF-Arcapita, Mumtalakat to acquire 90 pct stake in Nas United…” U.S. Retrieved 2018-09-02.
  44. ^Paul, Peralte C.; Shelia M. Poole (July 30, 2006). “Branching out, with limits”. Atlanta Journal Constitution. Archived from the original on 18 June 2008. Retrieved 2008-06-21.

Ofer Abarbanel online library

Ofer Abarbanel online library

Ofer Abarbanel online library