04 April 2007
Kuwait Finance & Investment Company and ADCB sign MOU
Kuwait Finance & Investment Company (KFIC) and Abu Dhabi Commercial Bank (ADCB) have signed an MOU to jointly establish and launch a Private Equity Fund with a target size of USD 155 Million.
KFIC is currently undergoing registration and approval processes with a target launch date in early April 2007.
The Fund will comprise 10 holdings pre-selected and allocated across 6 sectors including: Telecommunications, Banks, Investments, Insurance, Real Estate and Media. These holdings are further diversified across 10 countries including the GCC, Lebanon, Pakistan, Yemen and Jordan.
All the fundís constituents are ongoing concerns with their business plans in implementation phase and their activities on the rise increasing the likelihood of achieving the exit and realization plan. This is expected for the most part through stock exchange listings commencing 6 months after the Fundís launch with investor distribution expected sequentially and on a quarterly basis thereafter until the end of the fundís Term which is 3 years.
The Fundís expected internal rate of return is 30% per annum.
This ADCB/KFIC investment cooperation is the second after the Al-Bashaer Shariaía Compliant GCC equities fund which achieved the highest initial subscription in the GCC at USD 540 Million.
In a press release on this occasion, Abdulrahman Al-Saeed ē Vice Chairman and CEO of KFIC explained that the Private Equity Fund is unique in its approach, sectarian and geographic diversification and is expected to be well received by potential individual and institutional subscribers as a result of their trust in KFICís and ADCBís capabilities and specialization in Asset Management. KFIC in a relatively short period of time has succeeded in establishing a presence in Kuwait, the GCC and the Middle East in various areas and through cooperation with some of the most reputable institutions in the fields of Finance and Investment.
Mr. Alaía Eraiqat, Executive Vice President at ADCB added that Al-Bashaer Fund which was the first joint investment offer with KFIC succeeded in achieving a performance record, Al-Bashaer Fund has been awarded the ďBest FundĒ in its category by one of the leading Fund rating agencies worldwide. The Private Equity Fund provides a good balance between risk, return and liquidity where the investors are expected to return their capital invested during the first 2 years, by the third and final year it is expected to return their profits on the investment estimated at an annual IRR of 30%.
Kuwait Finance & Investment Company is listed on the Kuwait Stock Exchange and is registered with the Central Bank of Kuwait as an Investment Company licensed to conduct both Finance and Investment services capitalized at KD 30.5 Million. The company is backed by an active and diverse shareholder and client base with Asset under management approximating USD 3 Billion. Utilizing the experience and track record of its senior management and staff, KFICís investment services are focused on the GCC and the Middle East in Asset Management, Private Equity and Investment Banking. KFIC also offers financing services including consumer, commercial and real estate loans in addition to online brokerage services covering both GCC and global stock markets.
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