UAE-based Gulf Capital has announced the full exit from its portfolio company, Reach Employment Services, generating a return of over two times its original investment.
The alternative asset manager said in a statement that the sale of its 80 percent stake in Reach, in a structured management buyout, represents a complete divestment from the company.
Gulf Capital said it worked closely with the Reach Employment Services management team, doubling of the company's profitability. During Gulf Capital's ownership period, Reach increased its net profits by 110 percent.
Dr Karim El Solh, CEO of Gulf Capital, said: "The strategy of expanding the company aggressively across new sectors and geographies has firmly positioned Reach today as the leading manpower outsourcing company in the UAE. This investment cements Gulf Capital's track record of backing local companies and transforming them into market leaders across emerging markets.
"Reach today has a remarkable franchise and a strong management team and is well positioned to continue its impressive growth trajectory in the future."
Malik Melhem, CEO of Reach Employment Services, added: "Gulf Capital was instrumental in shaping the company's new growth strategy and in helping us to install the infrastructure and processes required to enable us to grow and scale rapidly. With our strong foundation and leading franchise, we are well positioned to continue our growth in the future."
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