A core element of Al-Zayed’s strategy is to enhance value at its existing portfolio companies. Al-Zayed is an active shareholder and exerts its influence through its nominee directors appointed to the boards of its portfolio companies. Through this governance structure, Al-Zayed has supported significant value-enhancing initiatives across its portfolio of investments and expects to continue supporting such initiatives. Implementation of past Al-Zayed supported initiatives has led to operational restructurings, appointments of key management personnel, and refinements of strategy and growth plans at select portfolio companies. To ensure Al-Zayed’s nominee directors are properly equipped to execute their duties at the boards of companies, Al-Zayed undertakes proactive steps to train and educate its representatives.

 

Al-Zayed seeks direct investments in companies with established track records of growth and profitability that demonstrate potential for continued expansion. Al-Zayed is primarily focused on investing in companies that are market leaders with strong management teams and effective governance systems. Al-Zayed’s typical approach to such investments is to establish a significant minority interest in the equity of the company and to secure board representation and appropriate shareholder rights. Such investments are primarily driven on the basis of expected financial returns.
Within Bahrain, Al-Zayed also seeks opportunities to develop companies and projects that take advantage of Bahrain’s appeal and strong positioning as a regional business hub and a popular tourism destination. In such opportunities, Al-Zayed’s involvement is subject to critical analysis of commercial feasibility and Al-Zayed’s requirement to generate appropriate financial returns on its investment.

 

Al-Zayed continuously evaluates opportunities for partial or complete exits of direct investments within its portfolio. When considering a partial exit, Al-Zayed aims to maintain a significant minority interest in its portfolio companies to maintain board representation. In certain strategic assets, Al-Zayed may continue to hold a majority interest for the foreseeable future.

 

Over time, Al-Zayed seeks to diversify its portfolio through active portfolio management activities, including investments in new assets and exits from existing investments. Given its significant stakes in several large companies, Al-Zayed is particularly exposed to certain sectors such as industrial manufacturing, aviation, telecommunications and financial services. A fundamental element of Al-Zayed’s long-term strategy with respect to its direct investments portfolio is to diversify its exposures across geographies, sectors and companies.