Bahrain’s GFH links up with Schroders to boost investments

The two companies plan to invest in the health care, education, technology and consumer sectors

Bahrain’s GFH Financial Group has teamed up with a subsidiary of global asset management group Schroders to invest in a range of sectors that include health care, education, technology and the consumer segment in different markets in Europe and Americas.

The two companies already completed their first deal in a global healthcare education provider, which is active in Europe and Latin America, and are looking for more opportunities, GFH said in a statement on Monday to the Dubai Financial Market, where its shares are traded.

GFH did not divulge details of the total investment in the deal but said the education provider has a large network of 35,000 students across 10 countries and “is solidly profitable, with tremendous growth potential”.

The partnership with Schroders Capital “strongly aligns with GFH’s vision of building a robust European and American private equity investment platform, an area where we continue to focus and expand both organically, as well as inorganically through partnerships, joint ventures and acquisitions of GP stakes”, said Hammad Younis, chief investment officer of GFH.

Schroders Capital is a subsidiary of London-based Schroders and has $70 billion worth of assets under management.

“We have long identified health care as an important strategic area for growth and we believe that Covid has been a catalyst to further capital allocation to the sector in order to build a safe and sustainable world,” said Mr Younis.

GFH, which has more than $12bn in assets and funds under management, is boosting its investments across the globe.

Earlier this year, it acquired a $100 million student housing portfolio affiliated with several top universities in the US as part of its expansion plans.

It also bought a US warehousing and distribution logistics centre for $100m in June and is awaiting shareholders' approval to fully acquire Khaleeji Commercial Bank.

GFH has also been investing in logistics assets across Europe, including supermarket retailer Tesco's Avonmouth distribution unit in the UK, which it acquired for $102m.

It also picked up the GP Logistics Centre in Spain for $96m, Amazon's fulfilment centre in the Czech Republic for $165m and Amazon's three last-mile assets in Spain for $100m.

GFH more than doubled its net profit for the second quarter of 2021, driven by growth across its business units despite the lingering effects of the Covid-19 pandemic.

Updated: October 25th 2021, 10:42 AM