- CedarBridge launched its third private equity vehicle, CBHG III, targeting $150M to back high-growth essential services across the GCC.
- Managed by ADGM-regulated Access Bridge Ventures, it held a first close in Nov 2025 and targets final close by end-2026.
- The fund targets a ~40% gross IRR via operational improvements and platform-building rather than valuation multiple expansion.
- Up to 35% may go to UK/Europe deals, adding diversification while keeping core exposure to GCC diversification-driven demand in sectors like education, healthcare, and consumer services.
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The launch of CedarBridge High Growth III signifies a continuation and refinement of CedarBridge’s strategy of targeting platform businesses in under-penetrated essential services across the GCC. The fund’s sector focus—education, healthcare, beauty, wellness, pet care, consumer services—matches areas experiencing policy support, rising middle-class incomes, and unmet capacity. The vehicle being managed by a regulated entity, Access Bridge Ventures Limited (FSP No. 200006, ADGM FSRA), adds credibility in governance and legal structure.
Strategically, reserving up to 35% of capital for UK and European opportunities gives CBHG III diversification benefits, enables cross-market expansion playbooks, and mitigates GCC-only macro risk (commodity prices, regional geopolitics). However, this also introduces governance, execution, regulatory, and exit risks associated with foreign markets. The emphasis on operational improvement rather than multiple expansion suggests the firm expects internal value creation to drive returns. The stated gross IRR target of ~40% is ambitious and requires disciplined deal sourcing, execution, and successful scaling, especially given likely higher capital costs or margins in consumer‐facing services.
The timeline—with first close in November 2025 and full raise by end-2026—gives CedarBridge approximately 12–14 months to attract additional LPs amidst a competitive private equity fundraising environment globally and within the GCC. Success will likely depend on demonstrating track record: exits such as The Grooming Company Holding and platform growth (e.g. Kids First Group) will be scrutinized. The alignment with national policies offers a tailwind, but structural risks remain: regulatory changes, labor/immigration constraints, inflation, supply chain, and consumer demand shocks.
Some open questions for investors include: Will CedarBridge be able to maintain consistent portfolio company governance and operational capacity at scale across multiple countries? How will currency risk, political/regulatory risk, and costs of expansion into UK/EU be managed? What are exit pathways expected (trade, IPO, strategic sale) in both GCC and international segments? And, given the high IRR target, what margin of error is acceptable—does the model allow downside cushion if a subset underperforms?
Supporting Notes
- CedarBridge’s CBHG III is targeting a USD 150 million fund size, with a first close in November 2025 and a full close by end-2026.
- The fund will principally invest across GCC markets, with up to 35% of capital allocated to select opportunities in the UK and Europe.
- IImad Ghandour, Co-Founder & Managing Director, said: “We do not rely on multiple expansion to generate returns; our focus is on building platforms with strong operations, governance, and scalability.”
- The target gross internal rate of return for CBHG III is 40% over the life of the fund, and it is structured to deliver regular cash distributions once the portfolio is sufficiently deployed.
- Access Bridge Ventures Limited, managing CBHG III, is registered in ADGM and regulated by the FSRA; its firm status was conferred in May 2020.
- Sectors of focus include education, healthcare, beauty, wellness, pet care, other consumer-facing service businesses. Previous portfolio companies include Kids First Group (UAE early childhood education provider) and The Grooming Company Holding (beauty services).
- The launch is positioned alongside economic diversification frameworks such as Saudi Arabia’s Vision 2030, UAE Vision 2031, and Kuwait Vision 2035, citing demographic growth and rising disposable incomes.