Channel Capital Advisors has acquired a minority interest in Magellan’s position in Beehive’s funding programme for Emirati small and medium-sized enterprises.
The mezzanine investment forms part of an AED600 million ($163.3 million) programme supporting SMEs, according to the announcement. The facility is backed by Goldman Sachs and Magellan, with Channel Capital joining as an additional institutional funder.
London-based Channel Capital said it has advanced funds to the facility and other innovation economy companies following the first close of its Corniche Sharia fund, a Sharia-compliant investment vehicle backed by partners from the GCC, the UK and other international markets.
For Beehive, the transaction marks a broader shift from peer-to-peer lending towards institutional capital formation. Jehan Karanjia, the company’s head of capital markets, said the expanded investor base would support Beehive’s growth and lending to the local market.
Channel Capital CEO Walter Gontarek said the investment reflects the firm’s commitment to supporting innovation economy companies and specialty finance in the GCC.
Source: Zawya
