Abu Dhabi Catalyst Partners (ADCP) has come as an anchor investor in Ruya Partners Ltd, a private credit firm focused on investing in mid-market companies operating within regional developing markets.
“This partnership is an important step in advancing SMEs’ access to growth capital, especially the mid-market segment Ruya is focused on,” said ADCP CEO James Munce.
“Ruya’s alternative credit offering will help overcome a material funding gap in MENA markets, play a significant role in growing the SME ecosystem and further promote access to institutional capital,” he added.
Abu Dhabi-based Ruya says it is the region’s first partner-owned private credit firm. It says it will provide alternative financing solutions to private companies that are largely under-served by traditional financing markets.
Ruya was set up last year and is led by founding partners Mirza Beg and Rashid Siddiqi, who previously managed the private debt business of Waha Capital.
Omar Al Yawer, partner at Ruya, said: “Being a partner-owned firm is unique for this region and ensures the highest level of team stability, transparency and alignment of interest between partners and investors in creating long-term value.”
Ruya says it will make structured credit investments in companies with strong business fundamentals, cash-generating capabilities and established management teams with a successful track record. Its capital will typically be used to finance growth, acquisitions, recapitalize company balance sheets, or rationalise the existing investor base.
The firm announced its first deal earlier this year, making a $25-million private credit investment in Starzplay Arabia. Abu Dhabi-based Starzplay is a subscription video-on-demand service in the MENA region that streams Hollywood and Arabic content to over 20 countries across the region and Pakistan.
ADCP was established in April 2019 as a $1 billion joint venture between Abu Dhabi sovereign wealth fund Mubadala Investment Company and Falcon Edge Capital, a New York-based investment company. It makes direct investments in companies and also backs alternative investment firms.