During the financial year ending 31st March 2023, MENA Capital’s investment portfolio suffered significant mark-downs on certain investments. MENA Capital went back to a loss position following 8 years of profits as two investments were fully written off due to accumulated losses and lack of visibility on exit. However, key holdings exited during the year generated positive returns and yielding investments continue to perform & distribute consistently. Notable exits during the year include SONIFI Solutions (Net IRR 35%), Gatehouse Capital Strategic Industrial Portfolio, USA (Net IRR 8.8%) and NIC San Pietro, Italy (Net IRR 8.1%). Simultaneously, we continue to rollover funds into new and diversified investments as per the Company’s investment policy.
MENA Capital’s investment portfolio has a balanced mix of growth / strategic investments and income
generating investments that ensures stable cash flows and a robust liquidity position. The Company
continues to closely evaluate investment opportunities sourced through strategic partners and ventures.
During the year under review, MENA Capital had a robust pipeline of 126 investment opportunities
spanning tech, crypto, real estate, private equity and credit among others. As of 31st March 2023, MENA
Capital has committed 133% of its paid-up share capital in promising investments in line with the
Company’s investment policy.
We highly value the role of corporate governance in improving the overall performance especially in the
current environment. Corporate governance in MENA Capital is a combination of internal and external
global best practices aimed at reducing risk exposures for protecting and maximizing shareholders’ value.
We continue to closely track global economic developments and emerging investment trends and
evaluate their impact on our current portfolio and strategy for the years ahead. The diversified
investment portfolio of the Company requires it to identify, measure, aggregate, monitor and manage
risks effectively and to allocate capital among its investments appropriately. Given the size of the
Company and its operations, the Company has adequate risk management framework to identify and
manage major risks.
