ABU DHABI, 6 July 2006 — Abu Dhabi Investment House (ADIH) yesterday announced that its maiden investment instrument, $75 million Al- Arabi Private Equity Fund launched in October 2005, has posted returns of 20 percent in the first half of the year closing June 30. The Fund which has tenure of five years was officially closed at the end of 2005 generating immense interest from regional investors.
The Fund offered 7,400, 000 shares with a par value of $10 each to both individual and institutional investors, while ADIH retained 100,000 shares of the private placement as its contribution to the Fund. The Fund’s shares are currently valued at $12 each.
Commenting on the success of the fund in generating targeted returns, Rashad Janahi, chief executive officer of ADIH, said: “The success of Al-Arabi Private Equity Fund endorses our strategy of generating quality investment avenues for regional investors. The Fund could also capitalize on the tremendous interest for private equity investments in the regional market which is expected to touch the $1 billion mark by 2007 from its current level of over $300 million.”
The Fund had set a minimum investment target of $100,000 for individual investors and $250,000 for institutional investors. “Through our extensive contacts and diligent monitoring of regional investment opportunities we could clinch several high-yielding investments for the Fund. Some of the major investments of the Al-Arabi include in Al-Ryan Bank of Qatar in which the Fund acquired a stake at the pre-IPO stage. We have also taken a substantial stake in the Bahrain-based leasing equipment bank, First Leasing Bank (FLB).”
“We are also planning a second edition of the investment instrument — Al-Arabi Private Equity Fund-II, soon,” Janahi said. The new fund will also look at investing in pre-IPOs, strategic private equity deals and mezzanine financing with focus on gaining full or effective management control. Other investment opportunities offered by ADIH include the $600 million Beirut Gate in Beirut Central District, $86 million The Lagoon on Amwaj Islands in Bahrain and a 144 million euro German Property Fund. ADIH had also successfully closed a $100 million private placement for Energy City Qatar in the UAE.