The Firm’s history

In 2021, Arcapita complete the sale of two portfolio companies, Stratus and NAS Neuron Health Services.

Arcapita has completed the sale of Stratus, a global leader in brand implementation, serving some of the largest, most recognized brands in the United States, to a leading U.S. middle market private equity firm. Despite the unprecedented economic downturn resulting from the COVID-19 pandemic, Stratus tripled its revenues and EBITDA over the holding period.

Arcapita, and Mumtalakat, the sovereign wealth fund of the Kingdom of Bahrain, announced the sale of their stake in NAS Neuron, a leading provider of outsourced medical claims processing services in the GCC, to a leading US based Fortune 100 company. The successful investment has exceeded target returns over a three-year holding period.

The COVID-19 pandemic led the world economy into unprecedented territory. Arcapita, with its well-devised business continuity plan, an international platform, extensive management expertise spanning multiple business cycles and a sound equity-funded balance sheet, worked diligently to minimize the impact of the outbreak on its investments and portfolio companies.

Arcapita and Bahrain Mumtalakat Holding Company, acquired approximately 90% equity stake in NAS United Healthcare Services, a Third-Party Administrator (“TPA”) specialized in medical claims management.

Arcapita also acquired Stratus (formerly MC Group), the sole nationwide provider of sign management, lighting, and service solutions in the US. Founded in 1953, Stratus provides signage and lighting services to customers across the US through a highly scalable, vendor-managed and asset-light business model.

As a result of the financial crisis, Arcapita was unable to refinance a maturing $1.1 billion financing facility and other liabilities. At the time, Arcapita determined that the best course of action to protect its shareholders, investors and other stakeholders was to file for protection and restructure under the jurisdiction of the courts in the United States. The restructuring was completed in 2013.

Arcapita moved to its new iconic headquarters located at the very heart of the Bahrain Bay development in Manama, Bahrain. The design of Arcapita building features an imposing horizontal glass structure, built and finished to the very highest standards and advanced technologies.

Arcapita officially opens a Singapore office, extending its operating horizon to Southeast Asia.

Fiscal 2008 was Arcapita’s most successful year to date, representing Arcapita’s 10th consecutive growth year.

In October 2006, Arcapita introduced a Shari’ah-compliant venture capital fund with a target size of $200 million. The fund was launched with the intention to generate long-term capital appreciation through investments in growth and expansion stage companies, with a primary focus on healthcare, information technology and industrial technology sectors.

In 2005, Caribou Coffee Company, Inc. completed an initial public offering (IPO) of its common stock, making Arcapita the first Shari’ah-compliant firm to publicly list a portfolio company on a major stock exchange in the United States.

On March 15, 2005, First Islamic Investment Bank and Crescent Capital rebranded to Arcapita.The Arcapita brand was introduced as a step towards building a unified global brand across the firm’s three offices in Bahrain, Atlanta, and London.

Arcapita issued its first Murabaha-backed Sukuk (Shari’ah-compliant equivalent of a bond) to international investors.

Arcapita opened a London office to handle private equity and real estate investments in the United Kingdom and Continental Europe.

In December 2002, Arcapita invested in the first phase of logistics platform of portfolios composed of 33 fully leased industrial distribution facilities in Germany, comprising over one million square meters of rental space. The investment was structured through a joint venture with Lend Lease Real Estate Investments GmbH.

In December 2000, Arcapita acquired Caribou Coffee, a popular international coffeehouse chain with multiple locations across the globe. In December 2000, Arcapita successfully sold Computer Generation Incorporated (CGI) to Intec Telecom Systems PLC, a publicly listed company based in the United Kingdom. CGI was the leading global provider of telecommunications mediation systems designed to collect and process electronic transactions and operating data passing through telecommunications switches.

Arcapita was founded by prominent businessmen from the GCC region. The firm commenced its operations in Bahrain in 1997, with the mandate to provide Shari’ah-compliant investments to investors in the Arabian Gulf region and Southeast Asia. Although many Islamic banks were being formed concurrently, they were mainly retail banks focusing on car and home loans not private equity investments. Financial institutions and the finance industry as a whole, had little to offer investors seeking sophisticated Shari’ah-compliant private equity and real estate investments up until the formation of Arcapita.