With the ACP Shariah Financing Fund oversubscribed at its first close in May 2025, Amwal Capital Partners is optimistic of more strong reception when the next offering of this private fund opens toward the end of 2025.
Partner and Co-Head of Fixed Income Sharif Eid shared with IFN Investor that the first offer period since November 2024 saw just over US$60 million raised – surpassing the US$50 million target. Being its first fund focused on Shariah compliant private credit investments across the GCC, subscriptions came from both new investors and previous clients of the firm’s other products.
Stating that the investor ratio is roughly equal across high-net-worth individuals, family offices and institutions – which include sovereign wealth funds and development agencies – Sharif noted that many regional investors realized their exposure to private markets within the GCC was extremely small.
“The public markets obviously make up a very important cornerstone of any investor’s asset allocation. But they are missing out on a wave of companies offering really exciting opportunities. Also, a significant portion of regional investors’ portfolios does not require liquidity. That naturally creates a trend toward increasing private market allocations.”
A key aspect underlying this fund offering is that it is structured to be a Shariah compliant product that works equally well as with conventional counterparts, explained Sharif, which gives Islamic investors access to a product they didn’t have before without sacrificing income.
Furthermore, this fund is intended to address an important deficit in Islamic investors’ asset allocation as public Sukuk do not offer enough diversification, Sharif said, which often leads to suppressed profit rates due to excess demand. Also, Islamic investors tend to be overexposed to real estate or equities.
This Amwal fund structure strives for strict Shariah compliance by incorporating the true sale and ownership of underlying assets plus a sharing of risk, Sharif noted. “This allows us to achieve a closer compliance to ideal Shariah structures than in available public counterparts, or in products that use Shariah wrappers on otherwise non-compliant investments.”
By embracing prospects in tech-driven solutions in many areas of the economy that are still very manual – from agriculture and food to healthcare and more – this fund is attractive to the older generation, who agree with the direction and like where it is going, even if they don’t fully understand how it works, Sharif said.
“As several start-ups built from the ground up have homegrown solutions tailored to local needs and use local data, they’re proving to be very effective. And local investors want to support these companies because they are ‘ours’ – not being any helicoptered-in European or American product,” noted Sharif.
“This sentiment drives funding too; people want to see these start-ups succeed. We want to see more indigenous start-ups, more development and more regional growth. But for that, credit has to flow into these economies. It’s a virtuous cycle.”
The Cayman Islands-based ACP Shariah Financing Fund aims to raise a minimum of US$150 million and up to US$200 million in total – with entry set at US$1 million. This close-ended fund of five years can be extended for two subsequent one-year periods. This US dollar-denominated fund need not be hedged for currency risk as all operations and investments are within the GCC, Sharif said. Capping each asset-backed structure at 12.5% of total available capital, a maximum of 7.5% in any single corporate entity and a 35% limit on any industry sector, this fund is targeting 12 to 15 diversified investments to avoid over-concentration, Sharif added. Distributions are conducted quarterly.
