The Scoop
Abu Dhabi’s BlueFive Capital will acquire a stake in Saudi-based Sidra Capital as part of plans to build a global asset management firm focused on Sharia-compliant investments.
Under the terms of the deal, BlueFive will acquire a significant minority stake in Sidra, which has assets under management of $4.1 billion. At the same time, Sidra’s shareholder Al Murjan Group will take a stake in BlueFive786, a new Islamic finance investment arm of the Abu Dhabi investor.
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Islamic finance assets have been growing rapidly, reaching about $3.9 trillion at the end of last year. Through its new Islamic finance unit, BlueFive aims to capitalize on those trends, helping an established Saudi-focused firm expand into other Muslim-majority countries.
Since its establishment last year, BlueFive has quickly grown to manage $2.6 billion in assets. It completed a $2 billion capital raise for its debut private equity fund in July, and earlier this month partnered with the private equity arm of CICC, sometimes referred to as China’s Goldman Sachs. That deal aims to create a new fund targeting investments in Chinese companies operating in advanced manufacturing, consumer goods, and the green economy, using the Gulf as a manufacturing and distribution hub.