« Somalia: Appearances and Decisions | Islamic MBA... »


December 28, 2006

Venture Bank & MENA VC investment

Starting a new category of commentary that might hive off one day, I thought I would share this odd bit of news from the Khalij Times on Bahrain's queer new entity the Venture Capital Bank [an oxymoron really, but what can I say, Machreqi Arab usage in English is usually painful], (well if one can call things published in the Gulf newspapers 'news' in any meaningful sense, perhaps regurgitated PR...Reg-PeR. My new jargon, Reg-PeR news).

Taking the essentials,

DUBAI — Bahrain-based Venture Capital Bank (VC Bank) has announced the first closing of its recently launched $250 million MENA Small & Medium Enterprises Fund, the first Shaiah-compliant fund dedicated to small and medium enterprises in the Middle East and North Africa region.

Co-managed by VC Bank and its technical partner, the US private equity firm Global Emerging Markets (GEM), the fund has raised more than the targeted amount for first closing of $75 million. Out of the total amount raised, almost 20 per cent has been committed by investors from USA.

I personally doubt the Fund will actually invest outside Gulf plus Egypt plus Jordan, knowing how the Gulf based funds generally work. Announced first closing at 75 million USD. Interesting part is they claim to have raised 20% from US investors.

Which US investors, well I am sure that is not disclosable.

I would add that this bit of information suggests to me that the Fund will largely invest in the end in smaller scale Hydrocarbon infrastructure assets:

Sharif Monfaradi, VC Bank's chief investment officer, Private Equity said: "As we have expected, the fund received sizeable demand from regional and international investors. The fund will provide the investors with an opportunity to be part of the region's economic growth while cultivating superior risk-adjusted returns by investing in the SMEs sector, which is despite their importance in driving regional economies, creating jobs and fostering technological innovation, have been neglected by institutional investors in the region". "In addition to Challenger Limited, the oil drilling company in North Africa that was recently acquired by VC Bank and GEM, we are already at an advanced stage on a number of other acquisitions." Monfaradi added.

Nothing wrong with that, per se, and in the Gulf area and environs, probably a good or even excellent bet. But not what comes to mind when one says SME fund.

Posted by The Lounsbury at December 28, 2006 11:49 AM
Filed Under: Jazeera-Arabia , MENA Region General , MENA VC & Priv. Equity

Trackback Pings

TrackBack URL for this entry:
http://www.aqoul.com/movabletype/mt-tb.cgi/3128


Comments

Curiously some major banks here in Denmark have started offering sharia compliant loans. I suppose there is a market.

Posted by: Klaus [TypeKey Profile Page] at December 29, 2006 04:35 PM

Eh?

What the hell has Islamic finance loans have to do with private equity?

Posted by: The Lounsbury at December 29, 2006 06:08 PM

Comment Subscription

Email Address: