Direct Investments

Direct Investments

The strategy of HJ Investment WLL’s Direct Investments is to invest in high quality companies with strong management teams that can deliver compelling financial returns over a medium to long term horizon. We look to invest in both income-generating assets that produce recurring revenue as well as growth-oriented assets that produce significant capital appreciation upon exit. We are able to invest at all levels of a company’s capital structure, include equity, hybrid / mezzanine and debt, and only within a Shariah compliant framework.

In equity investments, we typically focus on acquiring controlling or significant minority investments, with board representation. We will consider direct investments that are local, regional or global as long as the opportunity meets our rigid criteria. We have a diverse investment portfolio and will consider investments in a broad range of sectors, including financial institutions, industrials, consumer / retail, healthcare, education, real estate and oil & gas. Our team has a unique combination of international and local investment experience, allowing us to apply best-in-class practices within a regional framework in all phases of the investment cycle, from acquisition to portfolio management, and ultimately to exit.

We look at the investment cycle as one seamless process – ongoing portfolio management and the ultimate exit are considered upfront during the acquisition phase. Our rigorous investment screening process is focused on identifying those opportunities that fit with HJ Investment WLL’s long term investment strategy. We conduct a thorough review of all aspects of a business, including strategic, operational and financial to assess the current status and future prospects of the company. We also work to rigorously identify all potential risks and plan the steps required to mitigate them. Finally, it is critical that there is an alignment of vision between HJ Investment WLL, the other shareholders and management on the future direction of the company.

Once invested, we look to support management in building the business. We actively participate in developing the value-creation plan and monitoring its progress, using the in-depth experience we have gained over the years across a range of industries. We also look to provide strategic support to our portfolio companies through HJ Investment WLL’s extensive regional and global network. We seek to create value through operational improvements, management incentives and capital structure optimization. Committed implementation of the portfolio management plan leads to our ultimate objective – fruitful exits within a three to five year investment horizon, either via a sale to a strategic buyer or financial investor, or a listing on the public markets. Our long term goal is to generate superior risk-adjusted returns through a combination of income generation and capital appreciation over time and to work collaboratively with our partners to create value for all.