Dubai: Three financial institutions from the Middle East are promoting a $200-million Sharia compliant fund for investing in India.
Khaleej Finance and Investment (KFI) from Bahrain, Kuwait Investment Company (KIC) and Kuwait Finance House (KFH)-Baytak said, “‘Indian Private Equity Fund’ targets activities with controlled risks in growing sectors like the real estate.”
The fund is designed to reach an internal rate of return (IRR) exceeding 25% at the end of the 5 years investment period, they said in a statement.
“The fund has an investment period ranging between 3-5 years and is partially underwritten in Kuwait by Warba Investment Company,” it said.
The fund constitutes a qualitative change in the activities of KFI and is designed to help the bank go beyond the regional level. “Indian Private Equity Fund will enable KFI to compete with major investment institutions worldwide,” KFI chief executive officer Nabil Hadi said.
Talking on the partnership between KFI, KIC and KFH, Hadi said, “This partnership comes as part of the bank’s strategic vision of building alliances and strong long-term relationships with banks and investment institutions in the GCC countries.”
KFH-Baytak general manager Mohammed Al Omar said, “We found Indian Private Equity Fund has diversified the targeted sectors and distributed the allocations in a way that satisfies investors and minimises potential risks on their investments.”
KIC chairman Nasser Al Sbei announced that KIC and KFH are the co-managers, co-promoters and co-placement agents of the Indian Private Equity Fund, while KFI is the arranger, the lead manager, the co-promoter and co-placement agent.