RIYADH, 29 December 2006 — Bahrain-based Venture Capital Bank (VC Bank) has announced the first closing of its recently launched $250 million MENA (Middle East and North Africa) Small & Medium Enterprises Fund I L.P. (Fund), the first Shariah-compliant fund dedicated to small and medium enterprises in the Middle East and North Africa region.
In an email message sent to Arab News from Manama, the bank said the SMEs Fund, co-managed by VC Bank and its technical partner, the US private equity firm Global Emerging Markets (GEM), has raised more than the targeted amount for the first closing of $75 million.
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 unprecedented economic growth while cultivating superior risk-adjusted returns by investing in the SMEs sector. However, despite their importance in driving regional economies, creating jobs and fostering technological innovation, this sector has been neglected by institutional investors in the region”.