Alternative investments firm, NBK Capital Partners, has completed an investment in Energia Model Trading & Contracting LLC, a leading energy rental business in Saudi Arabia and one of the largest providers of temporary power solutions, with 500 generators and total capacity of 250MW.
The Shari'ah-compliant mezzanine investment will enable the company to expand and take advantage of the increased construction activity and infrastructure spending stimulated by Saudi Vision 2030. The firm’s diverse equipment base and engineering capabilities enables it to serve short and long-term projects to repeat customers across various industries, including oil and gas, utilities, industrials and infrastructure.
“We are committed to delivering superior returns for investors and this growth capital is consistent with our goal of investing in sectors that benefit from secular trends, in Energia’s case the domestic electricity supply and demand imbalance in the Kingdom. Energia has earned a strong reputation among its target market thanks to its long-standing partnership with Al Faris and excellent service standards,” said Yaser Moustafa, Senior Managing Director at NBK Capital Partners.
The Energia deal marks the third investment of the $160 million NBK Capital Partners Mezzanine Fund II, which was raised in 2017, following deals with Qimam El Hayat, a private international K-12 school in Riyadh, and Perkon, Turkey’s market leader in electronic payment systems.
“Our focus on providing flexible capital to profitable firms in market-leading positions with strong management teams has to date delivered outstanding results. NBK Capital Mezzanine Fund I, which–with eight successful exits and a 17 per cent gross Internal Rate of Return (IRR)–was among the world’s top performing mezzanine funds and our goal is to achieve similar returns for investors through the Mezzanine Fund II,” added Moustafa.
NBK Capital Partners, headquartered at Dubai International Financial Centre, has a strong track record in the Kingdom to date, having led seven investments–including three through mezzanine vehicles, and the firm continues to see attractive opportunities in the country. Energia Model Trading & Contracting LLC represents the second investment in the regional utilities and energy sector for NBK Capital Partners Mezzanine Fund II.