Waha Capital announces Q3 results, adopts turnaround strategy to deliver growth

ABU DHABI, 10 November 2019 – Waha Capital PJSC, a leading investment company in Abu Dhabi (ADX: WAHA), has announced its financial results for the third quarter of 2019.

The company’s Asset Management division continues to deliver solid returns with its flagship emerging markets equity and credit funds, producing strong returns for Waha Capital and third party investors. The Private Investments division was impacted by one-off losses.

Amr Al Menhali, who assumed the position of Chief Executive Officer in September, is leading a strategy to deliver a turnaround and set the company on a path of sustainable growth in the future.

With strong institutional backing, Waha Capital’s is focused on progressing the business and taking an active role in value creation at its portfolio companies, which are well diversified across several sectors, including energy, healthcare, aviation and financial services.

The company, with assets worth AED 10.6 billion, will optimize and expand its investment portfolio, leveraging international business networks to attract new opportunities in high-growth sectors internationally. The Asset Management division, which has seen assets under management rise 24% this year to AED3.1 billion, is also stepping up its efforts to attract third-party investors to its outperforming funds.

H.E. Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, said: “Waha Capital benefits from a strong balance sheet, with a healthy cash position and prudent leverage. The new management team, in close collaboration with the Board, is fully committed to building on the company’s strengths and long-standing track record of delivering attractive returns.

Commenting on Waha Capital’s turnaround strategy, Chief Executive Officer Amr Al Menhali said: “The Company has adopted a strategy to optimize and grow our investment portfolio, and to address asset-specific issues that have impacted financial performance. We will leverage our significant representation on the boards of portfolio companies to influence strategy and create long-term value, whilst pursuing new opportunities in growth sectors both locally and internationally. The Asset Management division is a key area that the company will develop further, utilizing the sectoral expertise of the company’s board and senior management, as well as a highly impressive track-record of outperformance by our funds.”

The company’s flagship funds have consistently outperformed the market. The Waha CEEMEA Credit Fund produced a total return of 14.7% in the first nine months of 2019, bringing total cumulative return since inception in 2012 to approximately 173%. In the same period, the Waha MENA Equity Fund delivered a total return of 21.4% and has provided a total return of over 170% since inception in 2014.

The company made adjustments following a reassessment to some of its investments, which resulted in a net loss of AED 205 million in the third quarter.