NEWS
Eshraq Investments, headquartered in Abu Dhabi, has revealed a new strategic direction, emphasizing the development of direct private equity capabilities and exposure. This shift aims to move away from its traditional portfolio and drive growth.
The investment company plans to concentrate on direct private equity investments, supported by cash flow from minority equity holdings, fixed income assets, and real estate. This diversified approach is designed to balance the portfolio and ensure consistent earnings.
Listed on the Abu Dhabi Securities Exchange (ADX), Eshraq acquired the Goldilocks Fund in 2022. However, in the first quarter of 2024, its net loss widened to AED 306.1 million ($83.3 million) from AED 34.1 million in the same period last year.
The substantial loss was primarily attributed to the decrease in the value of the Goldilocks Fund, which dropped by AED 400 million. According to data from the London Stock Exchange Group (LSEG), its share price has declined by 33% year-to-date, reaching AED 0.30.
In transitioning to a direct investment model, Eshraq intends to develop and implement transition plans for its legacy assets, including properties within its existing real estate portfolio and the Goldilocks Fund, currently managed by SHUAA GMC Limited, as stated by the company.
To support its new strategy, Eshraq plans to recruit fresh talent, including senior professionals, to enhance its ability to identify and assess investment opportunities. This strategic shift is set to be implemented immediately.
Abu Dhabi Financial Group holds the largest stake in Eshraq Investments, with an 18% ownership interest, according to data from the London Stock Exchange Group (LSEG).
