VENTURE CAPITAL BANK SUCCESFULLY EXITS FUDDRUCKERS & CARIBOU COFFEE FRANCHISES
VENTURE CAPITAL BANK SUCCESFULLY EXITS FUDDRUCKERS AND CARIBOU COFFEE FRANCHISES
39% ROI on sale of 60% Stake
Manama, Bahrain: Venture Capital Bank (“VCBank”), an Islamic wholesale bank licensed by the Central Bank of Bahrain, has successfully exited from its 60% stake in Fuddruckers restaurant and Caribou Coffee franchises in the Kingdom of Bahrain realizing a net return on investment (ROI) of more than 39% over a five-year investment period.
Following the acquisition in 2017 of the US-based coffeehouse, Caribou Coffee, and fast-casual dining outlets, Fuddruckers, the bank implemented sales oriented marketing programs that included renovating the customer experience at the franchises and investing in 13 new outlets. Today, both brands operate 36 store fronts across the kingdom with extremely popular online delivery options.
Mr. Robert Wages, CEO of VCBank commented on the resilience of the restaurant industry in Bahrain. “VCBank is thrilled to secure this exit for its co-investor. This exit is a testament to the solid operational planning and pandemic-related business downturn strategies we put in place. Fuddruckers and Caribou were able to grow their gross profits during 2021 beyond pre-pandemic levels as a result of careful cost management, aggressive store openings and an expanded delivery business.”
“VCBank has substantial experience in managing investments in the food and beverage industry. Historically, the industry has been resilient to temporary downturns and in the upcoming months we plan to realize substantial returns from strategic investments we made in this growing sector,” said Asad Aftab, Principal – Investment & Post-Acquisition.
The bank also has a successful track record in income yielding real estate and has recently exited from a US-based residential investment portfolio with a gross sale value of USD116.5 million garnering a 54% return on investment. The investment consisted of multifamily residential assets in Atlanta, Georgia, USA.
About VCBank
VCBank is a prominent provider and manager of alternative investment products, serving high-net-worth private and institutional clients in the Gulf Cooperation Council countries from its Headquarters in the Kingdom of Bahrain. The bank, which pioneered Sharia compliant venture capital in 2005, manages a diverse and growing portfolio with a global investment footprint that spans the MENA region, the United States and Europe.
The bank has an authorised capital of US$ 10 million and paid-up capital of US$ 1 million, and operates under an Islamic wholesale banking licence from the Central Bank of Bahrain. The bank is strengthened by a solid shareholder base, the expertise of a world class team, and an international network of trusted investment partners.
About Fuddruckers
American-restaurant chain Fuddruckers pioneered Bahrain’s fast-casual segment when it opened its first outlet in 1995. Its specialty large burgers are made from meat ground on-site and freshly baked buns, providing a healthier alternative to regular fast-food.
About Caribou
Caribou Coffee first started operations in Minneapolis, Minnesota, USA in 1992 and has been a premium coffeehouse chain in Bahrain since 2007. Most famous for its handcrafted coffees and smoothies it has been a staple lunch location for Bahrain’s financial sectors with strategic store locations in the Bahrain Financial Harbour and the Diplomatic Area.
Media Enquiries
Victoria McFarlane
Corporate Communications Consultant
Venture Capital Bank BSC (c)
Licensed as an Islamic Wholesale Bank by the CBB
P O Box: 11755, Manama, Kingdom of Bahrain
T +(973) 17 51 88 71
F +(973) 17 51 75 12
www.VC-Bank.com