Investment
Strategy
Investment
Strategy
Esterad Bank’s objective is to generate consistent returns with calculated risk from high-quality, rigorously-investigated, efficiently-structured and well-managed investment opportunities. The investment portfolio is prudently diversified by geography and sector in order to minimise concentration risk and better withstand market volatility. The Bank’s primary asset focus is on income-yielding real estate and selective private equity; with core investment markets comprising the GCC and MENA, Turkey, USA and Europe.
The Bank adopts a consultancy-based analytical approach to thoroughly examine each prospective venture and early-stage business proposal, with an emphasis on customer values, strategic positioning, competitive dynamics, business model sustainability, and management capability. Esterad Bank adds value to its portfolio companies through active participation and support, and a hands-on management approach in order to maximise the exit potential of its investments. In addition, the Bank identifies successful global business models for duplication in the MENA region in order to enhance and diversify regional economies; create employment opportunities; replace imports with local goods and services; and generate increased exports.
Esterad Bank leverages its Real Estate expertise to acquire and manage income-yielding assets in different markets such as Northern America, the UK, and Europe. The Bank invests across different asset types such as multifamily, senior living, and student housing along with commercial, industrial, and logistics assets that carry long-duration lease terms and offer attractive risk-adjusted returns to the investors.
The Bank sources and structures unique off market opportunities for its Investors and has a successful track record of exits . Esterad bank will continue to develop its Real Estate Investment Management platform through strategic long term partnerships with best in class operators in developed markets.
Esterad Bank targets selective private equity opportunities in the MENA and Eastern Mediterranean regions through partnership with strategic investors and management. The Bank focuses primarily on investing in companies in defensive sectors, such as education, healthcare, pharmaceuticals, agriculture, and food and beverage, in which the companies exhibit consistent growth in free cash flow. Esterad Bank has particular know-how and experience in key sectors such as technology, healthcare, agriculture, fertilizers, and food and beverages manufacturing.
| Investment Parameters | Private Equity | Income Producing Real Estate | Opportunistic |
|---|---|---|---|
| Geography | MENA Region | Europe, USA & MENA | Any |
| Investment Size | USD 10 mm to USD 50 mn | USD 10 mm to USD 50 mn | USD 10 mm to USD 50 mn |
| Ownership Interest | Controlling equity interest | Controlling equity interest | Equity or Debt |
| Expected Holding Period | 3 to 5 years | 5 years | 3 to 5 years |
| Targeted Cash Yield | 7 - 9 % | 9% | > 10% |
| Targeted IRR | 20% | 12% | >20% |
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