Magellan Capital has launched the Magellan Asset-Backed Opportunities Fund OEIC, the first of its kind to be incorporated in the Dubai International Financial Centre and registered with the Dubai Financial Services Authority (DFSA).
The fund is also the first institutional open-ended vehicle to invest in asset-backed facilities across the Gulf Cooperation Council (GCC) and Europe, with a portfolio comprising diversified assets, including loans to SMEs and individual borrowers.
The launch opens a new channel for institutional capital to drive economic growth and diversification across the GCC region. The fund can invest in Shariah-compliant facilities, making it accessible to the full range of GCC investors.
Read more: Private credit keeps attracting investors despite geopolitical uncertainty
It launches with $50m (£37.8m) in seed capital and is now open to professional investors. The fund is targeting more than $250m in assets in the medium term.
Magellan said the portfolio spans diversified classes of assets so that no single default can materially affect returns. It said the fund is already in advanced discussions with multiple counterparts across a range of segments and geographies, with a pipeline of prospective investments in place to support its growth trajectory.
“The UAE’s private sector has historically struggled to access capital efficiently – traditional lenders concentrate on large corporates, leaving SMEs and individual borrowers underserved,” said Ahmed Omar, chief executive of Magellan.
Read more: M&G launches European CLO ETF
“We see that first-hand, which is why this fund was built around an asset-backed structure that keeps us high in the capital stack and positions investors for strong risk-adjusted returns. The businesses driving the UAE’s economic diversification need a financing partner built specifically for them – particularly as the region navigates the aftermath of recent conflict.”
