FAYEZ BIN FAHAD GROUP is a wholly owned entity. In addition, the company has access to a large, patient, and readily available pool of capital; this differentiates FAYEZ BIN FAHAD GROUP from other local private investors that may be limited by the size of a potential investment and/or the investment horizon. The company also has relationships with many of the world’s top and largest private equity firms, therefore giving it access to a large pool of global industry leaders and sector specialists that can potentially partner with and/or provide sector advice to its local investee companies.
The company plays a unique role in the local private investments landscape of Bahrain. No other local entity possesses a comparable combination of capital, independence, experience, and nimbleness combined with access to international markets.
FAYEZ BIN FAHAD GROUP seeks direct, active minority investments in established operating companies with competent management and reputable and experienced shareholders. The company looks into a variety of deal types, with a preference for growth capital transactions. The company also considers investments in greenfield industrial projects, provided they have strong market fundamentals and well-structured contractual arrangements and are being developed by experienced technical partners.
FAYEZ BIN FAHAD GROUP decides on appropriate holding periods for different investments, depending on the unique characteristics of each investment. In general, the company has the advantage of being able to deploy patient capital, with a long-term investment horizon and a focus on value creation.
FAYEZ BIN FAHAD GROUP invests in various asset classes, including profitable operating companies, infrastructure assets, and industrial greenfield projects. The target return is determined on a case-by-case basis and is commensurate to the risk associated with a particular investment; the return on investment therefore varies, depending on sector, growth potential, liquidity, and capital structure, among other factors.
No, FAYEZ BIN FAHAD GROUP does make venture capital investments. The company’s direct investment strategy is to partner with existing operating companies or with investors who have significant sector expertise and proven operational track record. In addition, FAYEZ BIN FAHAD GROUP does invest in venture capital funds as the company’s private equity strategy focuses on investing in buyout and growth capital funds.
Most private placements involve offering of passive equity stakes, which is inconsistent with FAYEZ BIN FAHAD GROUP’s local direct investment strategy of seeking active minority investments. However, in most cases FAYEZ BIN FAHAD GROUP represents a better alternative for private companies seeking to raise capital than a private placement. Therefore companies seeking to raise private capital should explore FAYEZ BIN FAHAD GROUP’s appetite for a bilateral transaction prior to a private placement.
FAYEZ BIN FAHAD GROUP does not participate in auctions of equity stakes and instead seeks to invest in proprietary transactions. In most cases FAYEZ BIN FAHAD GROUP represents a better alternative for shareholders seeking to sell a minority stake in a private company than an auction process, given FAYEZ BIN FAHAD GROUP’s focus on maximizing future value of the enterprise for all shareholders as opposed to maximizing a short-term immediate sale value.
FAYEZ BIN FAHAD GROUP does not invest directly in the real estate sector, for example, in real estate development or construction companies. The company may have an indirect exposure to the real estate sector through investing in the mortgage sector or the building materials sector.
As part of FAYEZ BIN FAHAD GROUP’s investment process, the company performs due diligence on a potential investee company. The due diligence may include financial, legal, technical, and/or commercial due diligence. The due diligence process usually involves collaboration between the FAYEZ BIN FAHAD GROUP investment team and external advisors with specialized expertise in the respective fields of due diligence.
FAYEZ BIN FAHAD GROUP aims to be as efficient as possible in completing due diligence. The speed and efficiency of the due diligence process depends on the transparency and accuracy of the information the company receives, and on the cooperation of the management team of the potential investee company.
FAYEZ BIN FAHAD GROUP developed its asset management investment strategy in collaboration with international advisors, which provide the company with recommendations and alternatives, and also supports it in conducting due diligence on prospective fund managers. However, FAYEZ BIN FAHAD GROUP makes all final investment decisions.
FAYEZ BIN FAHAD GROUP developed its private equity investment strategy in collaboration with international advisors, which provide the company with recommendations and alternatives, and also supports it in conducting due diligence on prospective fund managers. However, FAYEZ BIN FAHAD GROUP makes all final investment decisions.
FAYEZ BIN FAHAD GROUP does not invest directly in public capital markets. The company does not, for example, buy stocks directly. Instead, it invests through funds and/or other investment vehicles offered by international asset managers.
No, FAYEZ BIN FAHAD GROUP is not restricted from investing in emerging market funds. In fact, both its asset management strategy and its private equity strategy envisage the company investing in emerging market funds.