Global Investment House, Dubai Islamic Bank, and Millennium Capital to seed US$500 million Islamic buyout fund
• Shailesh Dash: “Fund sponsor Global has strong track record in private equity in the region”
• Omar Masrur: “Dubai Islamic Bank and Millennium Capital are leading Islamic financiers”
Global Investment House ('Global') and Dubai Islamic Bank (“DIB”) announced today the approval of their US$500 million Islamic Buyout Fund by the Central Bank of Bahrain. The Fund will provide investors access to Shari’a-compliant private equity investments, a largely untapped asset class across the region. As seed investors, Global, DIB and Millennium Capital will be contributing 13% of the Fund’s capital. Global will be the Investment Manager to the Fund, while Millennium Capital will act as Investment Advisor.
The Fund has been set up as a parallel Shari’a-compliant investment vehicle to the “Global Buyout Fund L.P.”, a US$615 million conventional private equity fund that was closed earlier this year and is managed by Global. In 2007 the media foundation “Terrapinn” awarded the Global Buyout Fund the title “Fund of the Year” in recognition of Global’s role in the development of the regional capital market.
The Islamic Buyout Fund intends to acquire controlling positions together with the existing Global Buyout Fund or independently in Shari’a-compliant buyout opportunities in the Middle East and North Africa (incl. Turkey), South and South East Asia regions.
The Fund will target to achieve a net IRR of 20% p.a. by investing in portfolio companies where the Investment Manager and the Investment Advisor perceive the opportunity to add value through active support of portfolio companies’ management and operations. Upon every successful exit from a portfolio company throughout the fund life of seven years, profits will be distributed to investors. ....
