Glossary of Gulf Capital-Raising Terms

Raising capital from Gulf investors comes with its own vocabulary. This glossary explains the terms that come up most often when companies and fund managers raise debt and equity from sovereign wealth funds, family offices and institutional allocators across the GCC.

Capital advisory firm

A firm that advises companies and fund managers on raising capital and connecting with investors. Artane Partners is a capital advisory firm and placement agent.

Placement agent

A firm that introduces a company or fund to suitable investors and manages the fundraising process on its behalf, for a fee. It represents the party raising capital, not the investor.

Sovereign wealth fund (SWF)

A state-owned investment institution that manages national wealth, often at very large scale and with a long time horizon. The Gulf is home to several of the world's largest.

Family office

A private organisation that manages the wealth of a high-net-worth family. Gulf family offices are major, relationship-driven allocators of private capital.

Institutional allocator

An organisation that invests capital on behalf of others - pension funds, insurers, endowments, sovereign funds and similar - typically with formal mandates and processes.

GCC (Gulf Cooperation Council)

The economic union of Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman - the focus of Artane Partners' Gulf capital advisory.

Debt financing

Raising capital by borrowing - through loans, bonds or credit facilities - that must be repaid, usually with interest, rather than by selling ownership.

Equity financing

Raising capital by selling an ownership stake in the company to investors, who share in its future value rather than being repaid a fixed amount.

Private placement

The sale of securities to a select group of investors rather than through a public offering - the route most companies use to raise from sovereign funds and family offices.

Teaser

A short, often anonymised document that introduces an opportunity to potential investors and gauges interest before fuller materials are shared.

Information memorandum (IM)

A detailed document presenting an investment opportunity to investors - the business, the financials, the use of proceeds and the terms - prepared to an institutional standard.

Due diligence

The investigation an investor carries out before committing capital, covering financials, legal, commercial and operational matters. Credible firms welcome it.

Term sheet

A non-binding document setting out the key terms of a proposed investment, used as the basis for negotiating final agreements.

Engagement fee

A fee a capital adviser charges for the work of preparing and running a raise. See how placement agent fees work.

Success fee

A fee payable on a completed raise, usually a percentage of the capital raised, which aligns the adviser's incentives with a successful close.

Mandate

An engagement to advise on or run a specific capital raise on a client's behalf. Selective firms take a small number of mandates each year.

Reverse solicitation

When an investor approaches a firm on their own initiative rather than being marketed to - a concept that matters for cross-border regulatory compliance.

Allocation

The amount of capital an investor commits to an opportunity or asset class. Securing allocations from Gulf investors depends on trust and credible preparation.

For how Artane Partners works and how to verify us independently, see our credentials and verification pages, or our FAQ.