Dubai-based alternative investment group, Rasmala Investment Holdings (DIFC) Limited, has announced a landmark exit for its Poseidon Fund, delivering a return of over eight times its initial investment to participating shareholders. The successful exit was achieved through an in-kind distribution and marks one of the firm’s most significant transactions in the past two years.
A Landmark Transaction for GulfNav
The Poseidon Fund, managed by Rasmala’s subsidiary Rasmala Investment Bank Limited (RIBL), was established to increase the capital base of DFM-listed Gulf Navigation Holding PJSC (“GulfNav”) and fuel its strategic growth. RIBL structured and managed a USD 59.9 million (AED 220 million) issuance of Mandatory Convertible Bonds (MCBs) for GulfNav. These bonds were subsequently converted into 200 million ordinary shares at AED 1.10 per share, establishing the Poseidon Fund as GulfNav’s largest shareholder. The fund attracted capital from leading UAE-based family offices, high-net-worth individuals, and financial institutions.
Strategic Exit Aligns with Major Acquisition
The timing of the fund’s exit strategically coincides with GulfNav’s planned USD 871 million (AED 3.2 billion) acquisition of Brooge Energy Limited. This major acquisition is progressing as planned following the signing of the Sale and Purchase Agreement in May and a successful USD 136 million MCB issuance in July. The transaction, which will be settled through a mix of cash, new shares, and mandatory convertible bonds, saw Brooge delist from the Nasdaq as part of the acquisition process.
A Showcase of Bespoke Investment Solutions
This successful exit highlights Rasmala’s capacity for structuring complex and high-value investment vehicles in the region. Ali Taqi, CFA, Deputy CEO of Rasmala Investment Bank Limited, commented on the achievement.
“The transaction showcases our expertise in structuring sophisticated deals and delivering bespoke investment solutions that support our clients’ growth ambitions,” said Taqi. “We see significant opportunity in extending growth capital to GCC-based companies and leveraging our deep understanding of both private and public markets to help them achieve their next stage of development.”
About Rasmala Investment Holdings
Rasmala Investment Holdings is the parent company of Rasmala Investment Bank Limited (RIBL), an independent alternative investment manager regulated by the Dubai Financial Services Authority (DFSA). The firm serves a diverse client base of Gulf-based investors, including family offices, corporations, insurance companies, banks, and other financial institutions.
Source: Zawya
