Ithmaar’s private equity activities encompasses direct investments, the
development and launching of funds, and an active role in the placing of
proprietary and third party investments.
Funds Launched:
ALDAR PRIVATE EQUITY FUND (ALDAR)
Aldar, a closed-ended investment fund managed by Ithmaar Bank, was launched late
in 2006 to make investments with strong growth prospects globally in a range of
private equity investments such as private sector infrastructure projects, real
estate, and, possibly, Sharia-compliant hedge funds, with special emphasis on
the high growth countries of the MENASA region. Aldar had its final closing in
April 2008, at $200 million. All commitments to the Fund were fully drawn by
mid-2008; in the fourth quarter, following the successful sale of a major
underlying investment, approximately 11 percent of investors’ committed capital
was returned.
CITIC INTERNATIONAL ASSETS MANAGEMENT LTD (CIAM)
CIAM is part of the CITIC Group, a major diversified financial and investment
conglomerate wholly-owned by the State Council of the People’s Republic of
China.
CIAM’s principal activity is to invest in companies and projects
in China and internationally, both for its own account and on behalf of clients.
Established in 2002 to specialise in distressed asset management, the current
portfolio of CIAM includes direct investments in real estate, high technology,
health, retail and industrial projects.
Ithmaar has a 20 percent interest
in the voting and equity capital of the company.
INFRASTRUCTURE and GROWTH CAPITAL FUND L.P. (IGCF)
Ithmaar, a co-sponsor of IGCF alongside Abraaj Capital and Deutsche Bank, holds
a 24.5 percent interest in the IGCF General Partner, and is represented on the
ICGF investment committee. Funds managed by Ithmaar held an initial investment
interest of $200 million in IGCF, which is managed by Abraaj Capital, and closed
at its target of $2 billion of investor commitments in December 2007, thereby
becoming the then largest private equity fund focused on the MENASA region.
IGCF’s predominant focus is the acquisition of strategically significant stakes
in infrastructure projects and growth capital investment opportunities, and the
participation in large scale privatisations and buyouts. Sector focus includes
utilities, petrochemicals, oil and gas, industrials, transportation, ports, and
social infrastructure, such as education and healthcare.
IGCF made
several significant investments during 2007, including the acquisition of
Egyptian Fertilisers Company – the largest private equity-led leveraged buyout
in the history of the Middle East and North Africa (MENA) region: in February,
2008, IGCF sold this investment for a substantial profit, with the consideration
being in the form of listed shares of the acquirer. As a consequence, later in
2008, 15 percent of IGCF’s investors’ committed (and fully drawn) capital was
returned to its investors.
ITHMAAR-KAZYNA CIS REGIONAL ENERGY FUND L.P. (IKCREF)
Much
of 2008 was dedicated to developing the relationship forged following initial
high level visits by Ithmaar Bank’s Chairman and CEO to Kazakhstan during 2007.
In March 2008, Ithmaar executed a preliminary agreement to develop a major
regional private equity fund, the Ithmaar-Kazyna CIS Regional Energy Fund, in
partnership with Kazyna Capital Management JSC, the fund-of-funds arm of
Samruk-Kazyna, the Sovereign Wealth Fund of the Republic of Kazakhstan. The
Fund, which is targeted to raise $1 billion (with a first closing of $500
million) will have a term of ten years and will target investment opportunities
in the energy sector of the Commonwealth of Independent States (CIS), with
particular emphasis on the power and power-related sectors in Kazakhstan.
The Ithmaar Kazyna CIS Regional Energy Fund is expected to offer international
and regional investors the opportunity to participate in the continuing growth
opportunities of the CIS energy sector.