Standard Chartered Private Equity successfully exits US$ 75m Mezzanine Investment in Hassan Mohammed Jawad & Sons BSC
Exit is first for SCPEL in the MENA region
United Arab Emirates, 29 April, 2013 - Standard Chartered Private Equity Limited (“SCPEL”), the private equity arm of Standard Chartered Bank (the “Bank”), announced today that it has exited a US $75 million mezzanine investment in Hassan Mohammed Jawad & Sons BSC (“Jawad Business Group” or “JBG”), a family-owned private company based in Bahrain.
This is SCPEL's first investment exit in the Middle East. The investment was made at the height of the global financial crisis and served to recapitalize and strengthen Jawad Business Group’s balance sheet. SCPEL executes equity and equity-linked investments, as well as mezzanine debt, backed by Standard Chartered Bank’s balance sheet, providing clients with flexibility and certainty of funding.
Taimoor Labib, Managing Director & Regional Head of MENA Private Equity at SCPEL said:
"We take great pride in our partnership with JBG and the role we played in strengthening JBG’s balance sheet during such a challenging period. JBG is well positioned with a strong performing portfolio and excellent growth prospects throughout the GCC. We congratulate the JBG team on navigating the business through this cycle and we continue to believe their core brands give them one of the best retail portfolios in the region.
This investment shows SCPEL’s long-term dedication to the region and to the private equity and mezzanine asset class. We continue to have a large appetite for investing throughout the capital structure of our Bank’s clients. Our ability to invest in equity and equity-linked securities, as well as mezzanine debt, gives us complete flexibility in the creative financing solutions we can provide, along with certainty of funding."
Since 2002, Standard Chartered, through its Principal Finance Group, has invested and bought assets worth $5.5 billion in existing Bank clients as well as companies that become the Bank's clients throughout Asia, Africa and the Middle East. The investments aim to provide growth capital to enable development and expansion, buy outs and acquisitions, and balance sheet restructuring. The Principal Finance Group invests directly in asset classes that include Private Equity, Mezzanine, Infrastructure and Real Estate.
Faisal Jawad, Chairman & CEO, Jawad Business Group
“We are pleased with the successful exit realised by SCPEL and we look to continue to capitalise upon the opportunities in the markets throughout which we operate our portfolio of world leading brands and franchises. JBG and SCPEL came together in what were challenging times and we believe SCPEL’s exit is well timed.”
JBG is one of the largest and most diversified mid-market retailers in the GCC with approximately 550 stores in Bahrain, UAE, Qatar, Kuwait, Saudi Arabia, Oman, and India with distribution centres in Bahrain and Dubai. The Company’s main franchises include Accessorize, Monsoon, The White Company, Mango, Bhs, Pumpkin Patch, Hush Puppies, Chili’s, Lakeland, Dairy Queen, Costa Coffee, Burger King and Papa John’s Pizza in several GCC countries.
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