Janus Henderson targets Middle East with NBK alternatives arm deal

May 8, 2024 (Preqin News) – London-headquartered Janus Henderson has announced plans to acquire the National Bank of Kuwait’s private investments team.

The deal is another sign of the shifting dynamic in the region historically considered a solid source for raising capital. Today, investors in the area are looking for a deeper relationship with private capital, resulting in more GPs establishing offices and sending senior staff to embrace domestic entrepreneurship, knowledge sharing, and co-investment opportunities.

NBK Capital Partners (NBKCP) joins Janus Henderson’s $6.8bn alternatives arm in the new emerging markets private capital division. The transaction opens the door to more private equity and private debt opportunities in the region, and will deepen Henderson’s relationships with SWFs and major market participants across the Gulf Cooperation Council (GCC) and North Africa.

Established in 2006, NBKCP has $1.1bn in capital commitments to date. The firm launched the region’s first dedicated private credit fund 15 years ago, which returned 17% gross IRR, the statement adds.

Ali Dibadj, CEO at Janus Henderson, said the deal would ‘better serve clients who are increasingly seeking differentiated investments in private credit, including evolving opportunities in emerging economies. It positions us as pioneers in anticipating and embracing this long-term trend.’

Janus Henderson is the latest alternative asset firm to establish a partnership or a presence in the region, including investment bank Rothschild and Co Global Advisory, which opened an office in Riyadh in February this year.

Yaser Moustafa, CEO of NBKCP, who will continue to lead the team, told Preqin News that in private debt, the last two years have marked a ‘golden period for investing within the region,’ adding that greater private capital maturity across the entire ecosystem is becoming clear.

‘Back in 2007, private equity was brand new to the region,’ says Moustafa, adding that the opening of private capital opportunities was too much too soon for investors, investee companies, and the advisor community who, bluntly put, ‘didn't know what they were doing.’

‘All of that has changed and matured in the last 16 to 17 years’ he adds. ‘And we’re busier than we’ve ever been. Last year we did four new private credit deals for over $100mn. We exited three private equity deals. If you look across our whole platform, we’ve raised over $1bn but we’ve returned almost $1bn to investors still with assets under management.

‘We’ve proven that you can make money in these markets.’

Across the GCC, the number of active GPs has doubled in recent years as managers arrive to tap the $10tn opportunity presented GCC members' SWFs as they pursue more domestic investments and partnership relationships, according to the Private Capital in the Gulf Cooperation Council 2023: Preqin Territory Guide.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}