Leading shari’ah compliant financial institution Qatar First Bank (QFB) has made a successful exit from one of its private equity investments CMRC Limited.
QFC earned a net Internal Rate of Return of 19 percent (IRR) for its $31.5 million investment it had made into CMRC. The bank had acquired an adjusted stake of 13.5 percent in the leading medical rehabilitation center in the Gulf region in 2015.
Over the next 5 years, the company saw its turnover increase from $15 million in 2015 to $54 million+ in 2020.
QFC’s exit from CMRC is deemed as a strategic decision from the bank to improve its liquidity provision, balance sheet and focus on other diverse investment opportunities.
“We are happy to announce our successful exit from one of our legacy private equity investments in the region. The good business performance that the project enjoyed over the past years, and with the return on investment we have made from selling our shares in CMRC Limited, makes this investment a standout achievement for the bank.”
“Being able to achieve such profitable outcomes with a good return on investment in this project within the general atmosphere marked by business uncertainty in light of the Covid-19 pandemic, is testament to our experience and knowledge in investment.”
In a recently published 2020 financial results, QFB reported that the bank earned a net profit of $330 thousand in the fourth quarter of the last year. The bank also managed to reduce its overall annual net loss by 24 percent compared to 2019.
Qatar First Bank
QFB is the first independent shariah-compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity on Qatar Stock Exchange.