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Binghatti Capital Limited, an investment management firm regulated by the Dubai Financial Services Authority (DFSA), announced that the Binghatti Pinnacle Development Fund has completed its investment strategy, achieving a net internal rate of return (IRR) of 194% and a net multiple on invested capital (MOIC) of 2.3x for external limited partners.
These returns are net of fees, fund expenses and management’s carried interest. The fund has completed distributions to its limited partners and is currently undergoing formal liquidation procedures, subject to the fulfilment of the remaining regulatory and administrative requirements.
The fund raised approximately $29 million and pursued an investment strategy focused on developing and selling a single asset. It developed a mixed-use project comprising 178 units, with a gross development value of approximately $115 million. Around 90% of the units were sold before the project’s completion, with contracted sales exceeding $90 million.
Shahzad Janab, Chief Executive Officer of Binghatti Capital, said: “Success in development investing requires discipline throughout the investment cycle, from evaluating opportunities and deploying capital to construction, sales and distributions. The net internal rate of return of 194% and the net multiple on invested capital of 2.3x reflect the value generated by the Pinnacle Fund and the speed at which capital was returned to investors. Maintaining execution momentum amid rising regional uncertainty was a key factor in achieving this outcome.”