Unicorn Investment Bank launches its first Shari’ah-Compliant Global Private Equity Fund
Bahrain, 10 April 2006 - Unicorn Investment Bank has received Bahrain Monetary Agency approval to launch a US $150 million Shari’ah-compliant fund to target private equity investments globally. Unicorn is looking to seed invest in the Fund with up to 10% of total Fund size of US $150m, while the remaining will be raised via a private placement. The Unicorn Global Private Equity Fund I is a 5-year closed-ended fund.
The Fund will invest in selected geographical locations and sectors in order to benefit from cyclical upturns around the globe while diversifying risk. Stable and well-managed mid-cap companies across four key industries - consumer products, healthcare, business services and light manufacturing - will be targeted. The Fund will target investments into companies with potential near-term growth prospects and have annual revenues in excess of US $10m and earnings of at least US $2.5m.
Najib Fayyad, Senior Director and Head of Private Equity Middle East at Unicorn, said: “This is a unique opportunity for investors and I am delighted to be involved in such an exciting and innovative fund. By offering a global fund of this nature aiming at direct investment in the Middle East, Turkey, Southeast Asia and North America, investors are able to capitalise on the potential returns from investing in growth orientated undervalued companies while spreading the risk by investing in both mature and immature markets”. The Fund’s strategy is to leverage the bank’s financial, strategic and managerial expertise, unlocking the investment’s potential and increasing valuations upon exit.
Aamir Khan, Managing Director and Global Head of Private Equity of Unicorn Investment Bank, commented: “The benefits of investing in Private Equity in general and in a globally diversified Shari’ah compliant fund in particular, should be attractive to investors given the current vagaries of the capital markets in the region. Unicorn’s philosophy for private equity is to build value through a combination of conservative capital structures, sound business strategies, proper execution and Shari’ah compliant investments, which is at the heart of everything the bank does”.