By Reuters on Tuesday, September 08, 2009

The National Investor's (TNI) private equity arm and Kipco Asset Management Company (Kamco) plan to set up a $150 million (Dh550m) Islamic fund, in a sign that private equity activity in the Gulf is picking up.

The Shariah-compliant fund is to be launched within three months and will make six to seven investments with an average equity of $25m each in mid-size, family-owned companies.

"The market opportunity really lies in family businesses in the region who may have entered into too many disparate business lines and now feel they need to pick and choose and are looking into divestitures," said Yahya Jalil, Director of private equity at The National Investor.

"That creates opportunities for us," he said.

The fund targets companies that have fallen upon financial difficulties or that are in need of operational restructuring, said Jalil.

Private equity activity in the Middle East, like elsewhere globally, has fallen sharply since the beginning of the financial crisis, as it became more difficult for firms to obtain debt financing from the banking sector.

But analysts expect the sector to recover as credit markets are gradually opening up again and governments across the region have pledged to invest billions in healthcare, infrastructure and transport sectors.

TNI and Kamco will each contribute $15m to the fund, while the remaining $120m will come from third party investors. The target return for the investments is 30 per cent.

The reason for setting up a shariah-compliant fund is that "an Islamic structure can bring them [these companies] back into more modest debt ratios sustainable over the long run," Jalil said.

"The use of Islamic financing to supplement the equity tickets we write can potentially increase the investment firepower by 30 to 40 per cent," Jalil said.

"We will have the mandate to either take a minority stake, or where appropriate, a controlling stake in such mid-market firms," he said. TNI is an Abu Dhabi-based investment company active in investment banking, asset management, real estate and private equity.

UK PLACEMENT AGENT, IGS GROUP, APPOINTED TO RAISE FIRST TRANCH OF $100 MILLION

Abu Dhabi, UAE, 22 September 2009: The National Investor (“TNI”), Abu Dhabi's leading investment company, is today announcing plans to launch a MENA equities fund, domiciled in Dublin, Ireland. The TNI MENA Blue Chip Fund, an open-ended vehicle, will be seeded with $50 million out of Abu Dhabi with an initial closing target of $100 million. Benchmarked against the MSCI Arabian Markets Index, the Fund will aim to achieve long term capital appreciation by investing in listed securities in the MENA financial markets.

The Fund will be aimed at European institutional investors, and to assist in marketing the vehicle, TNI has appointed UK placement agent, IGS Group, who are arranging a roadshow for TNI in London towards the end of September.

Manager of the Fund, Walid Hayeck has over 15 years of relevant experience and oversees similar regional Funds. These Funds have a respected track record fully attributable to TNI and the current investment management team. The firm manages a suite of funds, including Standard & Poors ‘A’ rated MENA Real Estate Active Fund and the UAE Blue Chip Fund which was recently ranked as No 1 amongst UAE equity funds for Q1 2009 by the Zawya Funds Ranking System.

Speaking on the launch, Walid Hayeck, Director – Head of Asset Management, The National Investor commented: “There is a renewed European interest in Middle East and North Africa markets which remain the fastest growing in the world given their solid fundamentals. This fund is an ideal vehicle for institutional investors looking for the comfort of a highly regulated jurisdiction. Our process driven track record and our team management style ideally positions us as a partner of choice for investors looking for an indigenous and well established asset manager.
On the fundraising roadshow and TNI’s partnership with IGS, Walid added: “IGS was a natural choice to partner with on this venture given its experience with emerging markets investment opportunities and its reputation with our target European Institutions.”

THE NATIONAL INVESTOR (TNI)

John Godden, CEO, IGS Group said: “We are delighted to be working with TNI who we have found highly capable of marrying a strong investment process with detailed local knowledge. This is of particular value in the context of the outlook for the MENA region”


For more information please contact:

Rania Senada
Phone: +9712 6192336
Email: rsenada@tni.ae

Heidi Robinson
Phone : +97150 848 5022
Email : heidi.robinson@capitalmsl.com

John Godden, CEO IGS
Phone: +44 (0) 20 7395 6800
Email: John.Godden@igsgroup.co.uk

About The National Investor: The National Investor (“TNI”) is an Abu Dhabi-based investment company with over 14 years of proven track record in investment banking and investment management services. It is one of the leading capital markets players in the Middle East and North Africa (“MENA”) region and an active investor in the local stock markets. The firm was incorporated in 1994 as an investment company, and is licensed and regulated by the Central Bank of the UAE.

About The National Investor Asset Management: The Asset Management business was launched in 2005 and currently has nearly AED 1 billion (USD 272 million) in funds and discretionary portfolios under management. Since inception, the division has been awarded “Best Asset Management House” by Banker Middle East three years in a row from 2006 to 2008. Both of TNI’s flagship funds, TNI UAE Blue Chip Fund and TNI MENA Real Estate Active, have consistently outperformed their respective benchmarks and peer groups, and recently have been assigned “A” rating by Standard & Poor’s.

About IGS: IGS Group is an Alternative Investment Advisory business that is active in various areas of the Alternative Investing space including product development, distribution, portfolio management, due diligence, strategic advisory work and head-hunting. It has a significant network across the AI industry particularly in the Hedge Fund and Property Fund Management area.
For more information, visit www.igsgroup.co.uk

TNI UAE BLUE CHIP FUND AND MENA REAL ESTATE ACTIVE FUND COMMENDED FOR CONSISTENT OUTPERFORMANCE

Abu Dhabi, UAE, 15 February 2009: The National Investor’s (“TNI”) MENA equity focused funds have been rated ‘A’ by Standard & Poor’s Fund Management Rating services. Both TNI UAE Blue Chip Fund and MENA Real Estate Active Fund were commended by S&P for “achieving solid track records and consistency of performance as compared to funds with similar objectives”.
To achieve this rating from the world-leading rating agency, the funds were subjected to a rigorous 6- month assessment. The first step of the evaluation is a quantitative analysis of a 12-month track record for each fund, which 80% of candidate funds fail to qualify. For funds that meet the quantitative criteria, S&P examines the investment philosophy, objectives, universe, and investment style. It also scrutinizes style consistency and risk management standards. Furthermore, interviews with portfolio managers are conducted to ensure their level of understanding and engagement in the process and continuity of the business. The funds are finally judged on the clarity of their processes and the manager’s ability to achieve consistent outperformance.

Walid Hayeck, Director Asset Management, The National Investor commented: About The National Investor:
“This rating was achieved by a dynamic and professional investment management team that has demonstrated style consistency and outperformance in very challenging market conditions. The ‘A’ rating confirms our credibility a leading investment management house based in Abu Dhabi.” “The report commended our efforts to formalize the investment process and the steps taken towards establishing international standards in risk management and attribution which are critical in current market conditions.”
TNI Asset Management offers a suite of four funds, including TNI UAE Blue Chip Fund, TNI MENA Real Estate Active Fund, TNI Dana Women and TNI MENA Special Situations Fund, all consistently outperforming their benchmark indices. TNI was awarded “Best Asset Management House” by Banker Middle East magazine three years in a row in 2006, 2007 and 2008.

Contact:
Rania Senada
Phone: +9712 6192336
Email: rsenada@tni.ae

Daniela Fleischmann
Phone : +97150 6940375
Email : daniela.fleischmann@capitalmsl.com

The National Investor
PO Box: 47435, Abu Dhabi, UAE
www.tni.ae

About The National Investor: The National Investor (“TNI”) is an Abu Dhabi-based investment company with over 14 years of proven track record in investment banking and investment management services. It is one of the leading capital markets players in the Middle East and North Africa (“MENA”) region and an active investor in the local stock markets. The firm was incorporated in 1994 as an investment company, and is licensed and regulated by the Central Bank of the UAE.

About The National Investor Asset Management: The Asset Management business was launched in 2005 and currently has nearly AED 1 billion (USD 272 million) in funds and discretionary portfolios under management. Since inception, the division has been awarded “Best Asset Management House” by Banker Middle East three years in a row from 2006 to 2008. Both of TNI’s flagship funds, TNI UAE Blue Chip Fund and TNI MENA Real Estate Active, have consistently outperformed their respective benchmarks and peer groups, and recently have been assigned “A” rating by Standard & Poor’s.

About the TNI Blue Chip Fund: Although the fund may participate in markets throughout the Gulf Cooperative Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE firms with large capitalization, which present a steady and recurrent track record of earnings growth and have a potential for capital appreciation. Management Style The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach. Objective The fund aims to provide long-term capital appreciation through investing in equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC markets. Suitability Units of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the GCC equities.

About the TNI MENA Real Estate Active Fund: The Fund is a sector focused fund mainly targeting investments in equities of real estate firms publicly traded in the Middle East and North Africa (MENA) official exchanges. The Fund provides investors with a liquid investment approach to a traditionally illiquid and capital intensive sector. Management Style The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach. Objective The fund aims to provide long-term capital appreciation through investing in equity securities of real estate firms publicly traded in the MENA equity markets. Fund investments can also include private equities of firms expected to list their shares within a 12-month period, as well as debt instruments issued by MENA real estate firms. Suitability Shares of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the MENA equities.

About Standard & Poor’s: Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
For more information, visit www.standardandpoors.com