Abu Dhabi, October 17 2011: Etqaan Shariah Capital Partners, a private equity joint venture between The National Investor (“TNI”) and KIPCO Asset Management Company K.S.C. (“KAMCO”), is today announcing the first close of its Etqaan Shariah Fund (the “Fund”).
TNI, a leading Abu Dhabi based investment company, and KAMCO, a member of the Kuwait Projects
(Holding) Company (KIPCO), one of the region’s largest diversified businesses, are seeding the Fund
with US$20 million, and will continue to fundraise in regional and international markets, subject to country specific regulatory approvals.
The Fund, a first of its kind in the GCC, will invest between US$20 million and US$40 million in six to
eight portfolio companies in the Middle East and North Africa (MENA) region, and will seek to primarily
take majority stakes in leading regional businesses. Etqaan Shariah Fund targets companies with sound
business fundamentals, facing short-term financial pressures. Investment strategies include primary and
secondary buyouts, recapitalisations and other special situations. The Fund’s preferred sectors include
consumer retail, food processing, healthcare, industrials, transaction processing and services, telecommunications, media and utilities. By focusing on companies with the ability to pay cash dividends, Etqaan Shariah Fund aims to provide a dividend yield of up to five per cent (5%). The Fund targets a gross internal rate of return in excess of 30% a year.
Sadoun Ali, Chief Executive Officer of KAMCO comments: “We are excited to collaborate with TNI on this much needed product. In the wake of slow equity capital markets activity and a lack of initial public offerings, Etqaan creates a viable secondary market for investment firms to realise exits. We are looking to capitalise on attractive current market valuations and invest through the downturn to generate above average investment returns.”
Orhan Osmansoy, Chief Executive of TNI added: “KAMCO brings a unique value proposition to the joint venture. TNI and KAMCO have both achieved long-term historical returns in the top quartile of regional private equity firms through a combination of rigorous investment analysis, partnerships with strong management teams and access to preferred deal flow. As we invest Etqaan, we will adhere to this FOR IMMEDIATE RELEASE same approach, helping management teams increase the long-term value of their businesses through strategic advice, acquisitions and financings.”
Dewey and LeBoeuf LLP provided legal counsel to TNI and KAMCO during the formation of the Fund.
Deutsche Bank (Cayman) Limited will act as the fund administrator.
TNI’s private equity practice is one of the oldest and most respected franchises in the GCC. Started in
1994, TNI has made over two dozen investments so far, and has generated industry-leading realized
returns on its private equity portfolio over a 17-year period. Our investments over the past five years
have spanned attractive growth capital and mid-market buyout opportunities. With a shareholding base
of more than 100 shareholders, including some of the most prominent family groups and individuals from the Abu Dhabi business community, TNI has privileged access to deal flow. In recognition of its performance, TNI received the award for “Best Institution for Private Equity” from Banker Middle East in 2010, and was a finalist for the same award from Banker Middle East as well as Terra Pin in 2008. In 2009, TNI was awarded “Best Investor in Healthcare” at the MENA Investor’s Summit. More information about TNI may be found at www.tni.ae.
KAMCO is a regional investment powerhouse and a member of the KIPCO Group, one of the MENA
region’s largest diversified business concerns with consolidated assets worth more than US $19 billion, and ownership interests in a portfolio of over 60 companies operating across 26 countries. KAMCO’s asset management practice includes private equity, brokerage, portfolio management and proprietary trading. With interests in listed securities across various strategies, including segregated portfolios, equity products, credit and high yield funds, and money market instruments, KAMCO has significant experience in a wide range of solutions. Key sectors of interest include financial services, media, telecom, technology, industrials, energy and commodities. KAMCO’s extensive network of relationships gives it access to strong deal flow in the region. More information about KAMCO may be found at www.kamconline.com.