Sancta Capital has announced the acquisition and growth debt funding of Rental Solutions & Services Limited.
The alternative investment manager has taken ownership of the backup power solutions provider as it looks to grow in the UAE, Saudi Arabia and Bahrain.
The acquisition was funded via the issuance of a $43m Shariah-compliant senior secured debt instrument that offers an attractive minimum contractual annual return over four years.
Sancta Capital buys RSS
The structure provides Sancta Capital with an all-encompassing security package, a robust governance framework, and substantial upside participation on 75 per cent of RSS equity, with a 25 per cent stake allotted as management incentive.
A substantial portion of the issuance will fund the company’s hybrid solar-diesel power transition strategy.
Since 2020, RSS has made significant investment in data capture and analytics to allow for the integration of solar technology on customer grids to generate cleaner, cheaper and more reliable power.
The capital provided by Sancta Capital will accelerate the roll-out of this strategy, where RSS enjoys an early-mover advantage in a rapidly growing segment.
Stewart Murray, CEO of RSS, said: “This is a historic day for our business and marks a new chapter in the RSS story. The investment by Sancta Capital adds firepower to our hybrid solar-diesel transformation, supported by our talent, differentiated technology, and unique go-to-market systems.
“Together with Sancta Capital, we have an unprecedented opportunity to innovate for our customers as we continue to build a bigger, stronger, and more profitable business.”
Ahmad Alanani, CEO of Sancta Capital, said: “Ambitious government-led decarbonisation efforts are driving demand for energy efficient power, while the Gulf’s population growth and transformative giga-projects are placing greater strains on traditional power infrastructure.
“Backing RSS’ high calibre management team and leveraging its technology and data driven insights will provide strong, cost-efficient solutions for hybrid power customers, while creating significant value for investors.”
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