An increasing number of businesses are outsourcing their non-core and support activities to achieve a leaner and more cost-efficient operating structure. This trend has expanded from outsourcing basic activities such as cleaning and landscaping to more value-added services such as employee recruitment, brand management, sales and marketing, and healthcare-related services. Given the current economic climate, more firms are likely to outsource larger portions of their activities to reduce costs and this should accelerate growth.
Within the business services sector, we target companies that are asset light, technology-enabled, and deliver essential services on a broad geographic scale. The non-discretionary nature of such companies’ services helps provide resilience against unforeseen economic downturns, and its asset light, tech-enabled features provide management with operating leverage and the ability to adjust their cost base more rapidly to their operating environment. Furthermore, we target companies in sectors that are highly fragmented and lend themselves well to a roll-up strategy. Platforms that have national scale typically trade at a premium to regional or local operators, allowing bolt-on acquisitions to be completed at relatively attractive multiples.
Transitioning to over $300 million in revenue in 2021 Arcapita completed the sale of Stratus, a global leader in brand implementation, to Vestar Ca...
“Arcapita has been a true partner to Stratus and has been instrumental in growing the Company into the robust and successful business it is today.”
In 2017, Arcapita and Mumtalakat partnered to acquire an equity stake in NAS United Healthcare Services LLC. Today NAS Neuron is one of the largest...
“Backed by Arcapita and Mumtalakat, we successfully brought together the strengths of NAS and Neuron to benefit the wider healthcare industry.”
Group Chief Executive Officer, NAS Neuron
A joint venture between Arcapita and a Bahrain-based consortium of investors that, through a visionary master plan, is helping to write the story o...
“As Bahrain Bay’s major shareholder, Arcapita has helped to build a modern metropolis and created a legacy for future generations. We are proud to have Arcapita as our partner for this development.”
CEO, Bahrain Bay Development