Venture Capital Bank (VCBank) – Pioneering Islamic Investment Banking
Venture Capital Bank is an Islamic investment bank that operates in the Middle East, North Africa, and the Gulf Cooperation Council (GCC). Known as the first of its kind in the region, VCBank offers venture capital investment opportunities that drive business growth and risk-adjusted ROI. The bank is mainly active in four investment areas: venture capital, real estate, private equity, and financial advisory services.
Overview of Venture Capital Bank
Brief History
In November 2005, VCBank announced that it would be the first to incorporate venture capital investment activities in a Shari’ah-compliant investment format. This added an unprecedented new dimension to the global Islamic banking industry. The company vision is to be the foremost organization of its kind and to support the social and economic development of the region by driving business growth. By 2008, VCBank posted a net profit of USD 47 million and achieved an ROI of 27%.
Geographically
VCBank operates under an Islamic banking license that was provided by the Central Bank of Bahrain. The bank benefits from the financial backing of a prominent group of regional shareholders and offers a comprehensive range of services and investment opportunities to clients around the United States, the United Kingdom, Turkey, the Middle East, North Africa, and GCC countries, including Saudi Arabia, Kuwait, Qatar, the United Arad Emirates, Oman and Bahrain. VCBank’s headquarters are located in Bahrain.
Significant Investments
VCBank was the principal backer of a London real estate investment project by HFF Real Estate in 2018. The project involved an investment of over USD 450 million in a 76-unit real estate development in a high-end suburb of London. Earlier that year, VCBank acquired a 69% stake in the development of the Royal Hospital for Women in Riffa, Bahrain. After the development was completed, VCBank announced its exit and sold its shares to Amanat Holdings for USD 39 million.
Other major investments made by VCBank include:
• The Lounge – A venture capital investment in service offices in Bahrain.
• SVCIC – A private equity investment in a financial company in Saudi Arabia.
• Challenger Limited – A private equity investment in the Libyan oil and gas industry.
• Al Khobar Specialist Hospital – A venture capital investment Saudi Arabia’s healthcare industry.
• MENA SHIPCO – A private equity investment in the Greek shipping industry.
• The World – A real estate investment in the UAE.
• OBA Makarna – A private equity investment in the food and beverage industry in Turkey.
VCBank in the News
In November 2018, the Associated Press featured a press release about a massive real estate investment made possible by VCBank. It was announced that HFF Real Estate received financing of over USD 450 million for Regent’s Crescent, a residential project in the Marylebone section of London. VCBank was named as a principal lender in the deal. In 2010, Trade Arabia reported that VCBank’s net profit for a nine-month period surged to USD 15 million, a massive incline from the previous year’s loss of USD 10.3 million and the start of an upward trajectory in the bank’s success that continues until today.
More Companies in Asia and Oceania
YJ Capital
YJ Capital, a Japanese venture capital firm focused on backing entrepreneurs with a global mindset to successfully build long-lasting internet companies.
Shandong Ruyi Technology Group Co. Ltd
Shandong Ruyi Technology Group Co. Ltd. is a Chinese textile and clothing manufacturing giant with a significant interest in Europe.
Pitango Venture Capital
Sequoia Capital India is a venture capital company located in Delhi, India. Find out about the company’s investments.
Far East Ventures
Far East Ventures is an all-stage, all-sector venture capital firm based in the Asian Pacific. The company has a keen interest in investing in disruptive technologies within every sector including med-tech, e-commerce and information technology.
InnoVen Capital
InnoVen Capital, the top venture lending firm in India. Find out how it started, where it operates from and learn more about its significant investments.
Daiwa Asset Management Co.
Daiwa Asset Management Co. Ltd., a Japanese asset management company with a global presence. Learn more about Daiwa’s history and its investment practices.
Kickstart Ventures
Kickstart Ventures, a venture capital company located in the Philippines. Find out more about its history and discover its significant investments.
SoftBank Group
SoftBank Group is a Japanese conglomerate with various subsidiaries and investments around the world. Read about the company’s history and find out more about its most significant investments.
Mizuho Capital
Mizuho Capital is a Japan-based venture capital firm focused on making technology and biotechnology investments.
Investors with Interest in Asia and Oceania
Ruslan Baisarov
Meet Ruslan Baysarov, owner of Tuva Energy Industrial Corporation and majority shareholder of MOST construction company.
God Semenovich Nisanov
God Nisanov, Russia’s King of Real Estate is a highly successful Russian entrepreneur who has made billions through a variety of investments.
Ratan Tata
Ratan Tata, former chairman of Tata Sons and Tata Group and well-known Indian investor, industrialist, and philanthropist.
Mazen Al Sawwaf
Mazen Al-Sawwaf is a Saudi Arabian businessman with investments throughout Europe and Africa, and developing interests in the United States.
Naveen Tewari
Naveen Tewari is an Indian angel investor and entrepreneur who has been instrumental in the investment of over 30 startups and has personally invested in numerous companies. Tewari is the founder and of InMobi.
Eitan Neishlos
Eitan Neishlos is a fintech innovator, entrepreneur, corporate attorney, philanthropist, and the chairman of AHNA Group as well as Courage to Care NSW.
Abhishek Bhatewara
Abhishek Bhatewara is an Indian real estate developer, angel investor, and the Director at Clique Solar. Key investment sectors include clean tech, real estate, AI and big data.