Gulf Capital to set up $750M fund to invest in SE Asian startups

Private equity firm Gulf Capital is looking to raise money for its control-growth buyout vehicle—GC Equity Partners IV.

The firm, which is seeking to raise $750 million for the vehicle, is expected to target Southeast Asian companies that are looking to expand in the Middle East region, according to a DealStreetAsia report.

Gulf Capital manages $2.5 billion in assets across seven funds. GC Equity Partners III closed in 2016 and its portfolio includes Accumed, a healthcare management services provider, Medica Group, a medical aesthetic equipment distributor, and CWB, an intellectual property consultancy.

The latest fund has been established amid growing fund flows between the GCC countries and Asia.

GCC sovereign wealth funds have over $2.5 trillion in assets, according to a report commissioned by Gulf Capital.

The report added that bilateral trade between GCC countries and emerging Asian countries will grow by 6% annually over the decade, reaching about $578 billion by 2030 and surpassing the trade with established economies.

GCC's trade with China doubled from $90 billion to $180 billion between 2010 and 2021. The region is now looking to ramp up trade with Southeast Asian countries to explore sectors such as fintech, renewables and digitalisation.

The UAE, for example, has struck a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia and is also in talks with the Philippines.