Monday, June 18, 2007

Gulf cos plan $200 mn Indian private equity fund

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.

Read more in The Livemint article.

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