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Dubai-based asset manager KHK & Partners has spun off its capital-raising arm, dubbed Ayala Capital, according to a press release (pdf). Regulated by Dubai Financial Services Authority (DFSA), the core function of the new firm will be to raise capital for global asset managers targeting MENA-based investors, while the parent company, KHK & Partners, continues to focus on core investment and advisory services.
The firm already has a few asset managers under its belt, including USD 44 bn France-based asset manager Tikehau Capital ; Switzerland-based Montana Capital Partners, which was acquired by USD 1.5 tn asset manager Prudential Financial; space-focused private equity firm NewSpace Capital, and China-focused ShoreVest Partners, among others.
The investment strategies of focus? Private credit and equity secondaries, which the firm sees as a very rich space in the region, KHK & Partners CEO Hassan Karimi told EnterpriseAM UAE. The fact KHK & Partners is an asset manager itself that has been raising capital as an ancillary activity means it understands the ins and outs of the private equity and credit space, Karimi said. It’s also looking at providing Shariah-compliant capital-raising solutions, and is planning on hiring someone dedicated to that department, he added.
Its next target: the US, he said, adding that the firm is looking at onboarding one or two more asset managers over the next year.
Who are its investors? The firm already has a database of some 1k investors, including sovereign wealth funds, pension funds and endowments, family offices, and high net worth individuals based primarily in the region, Karimi said. The firm sees a big opportunity in European and Asian investors and family offices that are worth hundreds of mns of USD that have set up shop here, and is already tapping those as part of its strategic direction, he said.
Check sizes it has raised so far range from USD 5 mn to USD 200 mn, but the firm is also in advanced discussions to raise checks of USD 300-500 mn over the coming period, he added. It has already raised “several hundreds of mns of USD” for asset managers over the past year, he explained, adding that it expects to raise more than that over the next year.
