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Arcapita founded in 1997, is an asset management firm. Headquartered in
Manama Manama ( ', Bahrani Arabic, Bahrani pronunciation: ) is the capital and List of cities in Bahrain, largest city of Bahrain, with an approximate population of 297,502 as of 2012. Long an important trading center in the Persian Gulf, Manama is ...
,
Bahrain Bahrain, officially the Kingdom of Bahrain, is an island country in West Asia. Situated on the Persian Gulf, it comprises a small archipelago of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island, which mak ...
, Arcapita also operates from its offices in the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
,
Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in West Asia. Located in the centre of the Middle East, it covers the bulk of the Arabian Peninsula and has a land area of about , making it the List of Asian countries ...
, and
Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...
. The firm serves a group of investors in the
Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...
region including investment firms,
family office A family office is a privately held company that handles investment management and wealth management for a wealthy family, generally one with at least $50–100 million in investable assets, with the goal being to effectively grow and transfer ...
s, high net-worth individuals, and
sovereign wealth funds A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity ...
. Arcapita completed over 100 investments in the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, Europe, the
Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...
, and Asia for a total transaction value exceeding $30 billion. The
board of directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
contain nine members, mainly from the
Gulf Cooperation Council The Cooperation Council for the Arab States of the Gulf (), also known as the Gulf Cooperation Council (GCC; ), is a Regional integration, regional, intergovernmental organization, intergovernmental, political, and economic union comprising Ba ...
. Members are chairs, previous chairpersons, or current Chief Executive Officers of
sovereign wealth funds A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity ...
, regional investment firms or global financial services firms.


History

Arcapita was founded in 1997. Around that time,
Islamic banking Islamic banking, Islamic finance ( ''masrifiyya 'islamia''), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some ...
started to gain popularity, but the industry lacked Sharia compliant investment opportunities. Arcapita's Sharia compliant model was created offering private equity and real estate alternative investments. Arcapita's first exit was Computer Generation Incorporated in December 2000. In 2003, Arcapita opened a London office. In the year that followed, Arcapita acquired Church's Chicken, a quick-serve chicken restaurant chain, based in the United States. In 2005, First Islamic Bank, Crescent Capital Inc. and Crescent Capital Europe rebranded to Arcapita to unify their global brand across three offices in Atlanta, Bahrain, and London. Arcapita recorded a performance of $360 million in fiscal year 2008, and extended their geographical presence by opening an office in Singapore that would handle investments in Asia. In 2010, Arcapita moved its head office to
Bahrain Bay Bahrain Bay is a residential and commercial district located on the main island of Bahrain (26°15'01.1"N 50°34'45.8"E), (15 minutes) from Bahrain International Airport. Description Bahrain Bay is situated on coastal land adjacent to the ori ...
. In 2013, Arcapita completed its restructuring which was initiated in 2012. This restructure was due to the effects of the world
economic crises A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and ma ...
that lead Arcapita to file for Chapter 11. A year later, Arcapita raised a new equity capital from shareholders to fund its growth strategy. In 2017, Arcapita along with
Mumtalakat Holding Company Bahrain Mumtalakat Holding Company B.S.C. (Mumtalakat) is the sovereign wealth fund of the Kingdom of Bahrain. It was established by Royal Decree in 2006 and is wholly owned by the Government. Mumtalakat actively sought investment opportunities l ...
, acquired a controlling interest in NAS United Healthcare Service, making it Arcapita's first private equity investment since the capital raise. In 2017, Arcapita acquired branding firm Stratus; they then sold the firm to
Vestar Capital Partners Vestar Capital Partners is an American private equity firm focusing on leveraged buyout transactions in middle-market companies in the United States. The firm, which was founded in 1988, is headquartered in New York City with offices in Boston, Ma ...
for an enterprise value of more than $450 million, reportedly three times the value at the time of Arcapita's purchase. In April 2021, Arcapita announced the purchase of the Cedardale Distribution Center in Dallas used by FedEx. The value of Arcapita's US industrial real estate portfolio became over $200 million after the acquisition.


Portfolio


Private equity

Arcapita acquires interest in midsized companies with an emphasis on the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, and
the Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...
. Arcapita's private equity portfolio contains 6 active and 41 exited investments. Some past investments include: *
Freightliner Group Freightliner Group is a rail freight and logistics company headquartered in the United Kingdom. It is owned by Brookfield Corporation, Brookfield, a Canadian investment management company and GIC (sovereign wealth fund), GIC, a Singaporean sove ...
Limited – a UK rail logistics company – Acquired in 2008, exited in 2015. *
Church's Chicken Church's Texas Chicken is an American fast food restaurant chain that specializes in fried chicken and is headquartered in Atlanta, Georgia. The chain was founded as Church's Fried Chicken To-Go by George W. Church Sr. in April 1952, in San Ant ...
– a quick-service chicken restaurant chain – Acquired in 2004, exited in 2009. * PODS – provider of portable storage and moving solutions for residential and business customers. Acquired in 2007, exited in 2015. * J Jill – retailer of women's apparel, accessories and footwear – Acquired in 2011, exited in 2015. *
Caribou Coffee Caribou Coffee Company is an American coffee company and coffeehouse chain. It was founded in Edina, Minnesota, in 1992. As of September 2023, the company operates over 750 locations worldwide. It is headquartered in Brooklyn Center, Minnesota. ...
Company, Inc. – an international retail coffee business – Acquired in 2000, exited in 2011. * South Staffordshire – water utility company that supplies water in the English Midlands – Acquired in 2004, exited in 2007. * Roxar – an independent technology services company, dedicated to developing solutions to optimize reservoir production for the global oil and gas industry – Acquired in 2006, exited in 2007. *
Stratus Stratus may refer to: Weather *Stratus cloud, a cloud type **Nimbostratus cloud, a cloud type **Stratocumulus cloud, a cloud type **Altostratus cloud, a cloud type ** Altostratus undulatus cloud, a cloud type **Cirrostratus cloud, a cloud type Mu ...
– the sole nationwide provider of signage and lighting services in the US – Acquired in 2018 and exited in 2021. * NAS Neuron – a leading third-party administrator of medical claims in the GCC – Acquired in 2017, exited in 2020.


Real estate

Arcapita acts as principal, arranger and manager of real estate investments, and has completed transactions worth $13 billion. Arcapita focuses of the following sectors: industrial and
logistics Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the ...
assets, and rental housing, which includes senior living and student housing communities. Arcapita currently has 16 real estate investments under its management, and over 50 exited investments. Past real estate investments include: * ARC Real Estate Income Fund – a joint venture with Al Rajhi fund to acquire logistics and retail properties – Vintage year 2010, exited in 2015. * Arcapita Senior Living – a series of investments as part of a joint venture with
Sunrise Senior Living Sunrise Senior Living is an American operator of senior living communities. As of 2024, it operates over more than 270 independent living, assisted living and memory care communities throughout the United States and Canada making it the sixth-la ...
to acquire assisted living properties in the United States. Vintage years 2002–2005, exited in 2006–2015. * Riffa Views – joint venture with Bahrain International Golf Course Company to develop a golf course residential community – Vintage year 2004, exited in 2014. * Arcapita Asian Industrial Yielding I – a joint venture with
Mapletree Investments Mapletree Investments Pte Ltd is a global real estate development, investment, capital and property management company committed to sustainability. Headquartered in Singapore, the Group currently manages three Singapore-listed real estate invest ...
Pte Ltd, to acquire industrial properties in Singapore, which was exited via an initial public offering (IPO) on the Singapore Exchange (SGX). Vintage year 2008, exited 2010. * Mutlifamily I – a series of investments as part of a joint venture with
Archstone-Smith Archstone was a real estate investment trust that invested in apartments. In 2007, the company was acquired by Tishman Speyer and Lehman Brothers and, in 2013, the company's assets were acquired by Equity Residential and AvalonBay Communities. ...
to acquire apartment complexes in the United States. Vintage year 2000, exited in 2005. *
Bahrain Bay Bahrain Bay is a residential and commercial district located on the main island of Bahrain (26°15'01.1"N 50°34'45.8"E), (15 minutes) from Bahrain International Airport. Description Bahrain Bay is situated on coastal land adjacent to the ori ...
– a mixed-use waterfront development – Vintage year 2005.


Compliance with Shari'ah

Every investment made by Arcapita and its subsidiaries is approved by a four-member
Shari'ah Sharia, Sharī'ah, Shari'a, or Shariah () is a body of religious law that forms a part of the Islamic tradition based on scriptures of Islam, particularly the Qur'an and hadith. In Islamic terminology ''sharīʿah'' refers to immutable, intan ...
advisory board. In accordance with
Islam Islam is an Abrahamic religions, Abrahamic monotheistic religion based on the Quran, and the teachings of Muhammad. Adherents of Islam are called Muslims, who are estimated to number Islam by country, 2 billion worldwide and are the world ...
ic Shari'ah law, the company does not invest in any businesses which offer
credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...
or charge
interest In finance and economics, interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct f ...
, or any other product that conflicts with Shari'ah law. According to representatives of the company, the Shari'ah advisory board does not make decisions about the financial merits of investments, and does not play a role in hiring or promotion of employees.


References

{{Reflist Financial services companies established in 1997 Companies based in Atlanta Private equity firms of the United States Islamic banking