Tamwuil Capital, a company led by former Barclays global head of trade and working capital Baihas Baghdadi, has launched a sharia-compliant working capital fund aimed at Middle Eastern investors.
The investment vehicle is fully aligned with Islamic law and has been established with an initial €25mn contribution from a top-tier financial institution based in the Gulf Cooperation Council region, the firm tells GTR.
The fund aims to connect Middle Eastern investors with private debt assets in the EU, US and Latin America, while offering shariah-compliant financing to mid-sized corporates in need of liquidity.
Unlike traditional working capital finance funds, the vehicle has been designed in full compliance with Islamic principles and does not charge interest, the company says.
“Our model revolves around purchasing goods on behalf of our corporate clients,” Baghdadi tells GTR.
“These goods are then sold to the clients, with our firm eventually becoming the true owner of the goods. This structure is fully aligned with the requirements of Islamic law and has been approved by the Sharia Boards of some of the most conservative financial institutions in the Middle East,” he says.
Tamwuil Capital is aiming to reach invested capital of €500mn over the next 24 months and will initially target major Islamic financial institutions and family offices in the GCC.
“In the second stage, we anticipate attracting investment from major Islamic investors in Asia, including countries like Indonesia and Malaysia, among others,” Baghdadi notes.
The fund will primarily focus on mid-sized corporates in the Americas and Europe, targeting companies with annual turnovers ranging from €10mnto €2bn.
Tamwuil Capital says it can disburse funding within 48 hours of a corporate’s first contact, offering liquidity to fast-growing businesses that have been neglected by major banks.
“The traditional banking system is not always able to respond with the speed that the market demands. That’s where we come in,” Baghdadi says.
“If a company needs to purchase, grow or capitalise on an opportunity, we step in and directly purchase the raw materials they require, seamlessly. Our focus is on high-growth-potential companies, regardless of their current size,” he adds.
Family fund Baghdadi Capital manages over €2.2bn in assets and provides finance through Spanish non-bank lender Trade & Working Capital and its US-focused receivables finance business Higher Bridge Capital.
“This fund has been something I have wanted to launch for over two decades, for western corporate clients,” Baghdadi says.
“Throughout my career, since my time in banking, I have seen the clear value this type of financing structure adds. It aligns the interests of both the physical and the financial supply chain and I truly believe it is the right time to introduce this offering to the market.”
