EightClouds uses male grooming niche to style Shariah investments

In the bustling financial hubs of the Middle East and New York, EightClouds is styling a new Shariah investment approach by tapping a market few look into: male grooming.

The Dubai-based alternative investment platform, established in 2022, is primarily involved in PE and credit plus real estate that aligns with Islamic principles. But one of its most striking success stories is Chaps & Co, a male grooming chain.

What began as a single barber shop in Dubai, under EightClouds' stewardship, blossomed into a network of 14 outlets. The expansion spans the GCC region and, notably, includes prominent locations in New York, gracing iconic streets like Broadway and Park Avenue, Business Development Director Gavin Pearson shared with IFN Investor.

"The grooming sector is resilient, built on repeat revenue, and rooted in personal service," Gavin explained, highlighting the potential of an industry that typically gets little mention in business press. "Chaps & Co started as one shop, and today it operates in multiple markets. That is the kind of growth journey we aim to support."

Quietly booming: The male grooming market

While it may not get as much attention as the feminine personal care market, the male grooming market – comprising hair care, shaving and skin care products – is expanding, according to Future Market Insights, which projects an industry value of US$100 billion over the next decade from a 2025 estimate of US$60 billion.

The Delaware-based firm isn’t the only one making such forecasts. More men are becoming conscious of personal hygiene and appearance due to social media, celebrity endorsements and a societal shift towards self-care, actively seeking out and purchasing their own grooming products, rather than relying on products marketed to women.

Competition in the men's grooming market is fierce, with both established multinational corporations and emerging niche brands vying for market dominance.

The transformation of a local barber shop into a transatlantic brand embodies EightClouds’ "invest locally, scale globally" ethos. It illustrates how targeted investment and active operational support can propel a local venture into a multi-market player, setting a precedent for future growth within a portfolio.

EightClouds gets involved

EightClouds' investment methodology goes beyond merely writing checks, explained Gavin. The firm adopts a hands-on, operational approach, embedding itself within its portfolio companies. From their Dubai Hills Business Park office, a team of 30 professionals offers comprehensive support in marketing, finance and legal matters.

This operational backing extends to technology, too. EightClouds leverages FuturByte, an in-house tech company with approximately 70 personnel primarily based in Pakistan. This team provides a full spectrum of tech solutions, from website and app development to customer relationship management and fintech integration, enabling portfolio companies to professionalize and scale efficiently.

"We're not just your typical PE company. We are a strategic investor and get more involved operationally, providing expertise and vision to help SME’s transition from strong local players to globally successful businesses."

The firm's commitment to Shariah compliant investing is also a cornerstone of its strategy, with businesses like Chaps & Co serving as a compelling model. About 18 months ago, EightClouds introduced a Murabahah fund, specifically designed to provide Shariah compliant fixed income returns.

"We saw a gap in the market for a Shariah compliant fixed income product that was both accessible and transparent," Gavin noted. This fund, with an accessible entry point of US$50,000, offers a fixed return of 12.5% per annum, paid out on redemption over a two to four-year term. Crucially, the businesses EightClouds invests in through this fund must also adhere to Shariah principles.

While male grooming inherently sidesteps many Halal screening concerns, the underlying principle of investing in fundamentally sound, consumer-driven businesses that align with Shariah values is directly exemplified by Chaps & Co's success. The Murabahah offering was carefully structured with the guidance of Mufti Faraz, a UK-based Shariah adviser who serves as the firm’s Shariah compliance officer, ensuring all regulations are met.

While their Shariah compliant offerings currently represent about 25% of their investment vehicles, EightClouds sees significant potential for growth, particularly in markets with large Muslim populations such as Indonesia, Malaysia and parts of Africa.

EightClouds' active ownership model appears to be yielding impressive results. From January 2022 to April 2025, the firm reported an unrealized gross internal rate of return of 88.2%, significantly outperforming the S&P 500's 13.8% over the same period. In 2023 alone, its AuM surged by 40%, and the aggregate value of portfolio companies rose by 35%.

With plans to open a Saudi Arabia office by 2026 and a pipeline of over US$300 million in approved opportunities, EightClouds is clearly charting a course for continued expansion and impact.

This proactive approach, investing in homegrown businesses with the intent to "scale them globally," as Gavin describes it, showcases a firm that is not just observing market trends but actively shaping the future of Shariah compliant investing in dynamic consumer sectors.