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Channel Capital Advisors has completed an investment in Beehive Fintech’s SME funding programme, acquiring a minority stake in Magellan’s position in the AED 600 million facility. The transaction was executed via the London-based firm’s Sharia-compliant Corniche strategy after the fund reached its first close. Beehive serves as the MENA region’s first digitally-regulated SME funding platform and retains support from existing institutional backers Goldman Sachs and Magellan alongside the new participant, according to a LinkedIn announcement from Channel Capital Advisors.
The investment aligns with Channel Capital Advisors’ focus on specialty finance and the innovation economy across the GCC. Channel Capital Advisors noted that the Corniche vehicle delivers exposure to asset-backed strategies while meeting Sharia standards. The announcement highlighted the deployment as part of broader efforts to channel institutional capital into underserved segments of regional lending markets.
Walter Gontarek, CEO and Chair of Channel, said in the announcement, “This close represents a further commitment to support the innovation economy and specialty finance in the GCC region.” Gontarek has led the firm since its founding in 2007, during which Channel Capital Advisors has built a track record in privately originated credit. The executive’s comment came as the firm continues to expand its presence in Sharia-compliant and conventional asset-backed finance.
A.T. Kearney data places the current SME funding gap across the GCC at $250 billion, with bank balance sheets often committing less than 10 percent to support local businesses. Beehive Fintech has operated at the intersection of digital regulation and SME finance since launching more than a decade ago, providing an alternative channel for borrowers who struggle to access traditional bank loans. Channel Capital Advisors has deployed cumulative funding of more than $1 billion to high-growth companies and fintechs in the GCC since 2017, its announcements show.
Channel Capital Advisors launched the Corniche Sharia ABF fund earlier this year targeting $200 million in commitments from institutional investors and family offices. The vehicle complies with AAOIFI standards and focuses on receivables finance and other asset-backed instruments. Earlier initiatives from the firm in the UAE have included support for embedded finance providers and revenue-based lending platforms addressing similar SME segments.
The addition of Channel Capital Advisors to the Beehive facility is expected to broaden the platform’s capacity to originate loans for small and medium-sized enterprises operating in the UAE and selected MENA markets. Channel Capital Advisors maintains FCA authorisation in the United Kingdom and has maintained a dedicated Sharia-compliant trade finance practice for several years. The firm’s regional engagements form part of a wider push into specialty finance that has included multiple deployments in the UAE innovation economy over the past 12 months.
