Global Buyout Fund, a$615 million vehicle managed Global Capital Management, the alternative investment funds arm of Global Investment House (GIH), has returned 3 percent of committed capital to its investors.
This has been derived primarily from dividends and interest from portfolio companies and permitted temporary investments, GIH said in a statement.
Most of the fund’s portfolio companies have experienced strong performance and declared dividends, Shailesh Dash, managing partner, said in a statement. The firm’s focus is to increase the value of its investments and to reduce portfolio risk through diversification. “As a case in point, at present, all the fund’s investments are in different sectors and countries,” he added.
Dash also said the firm aims to exit some of its investments through public listings in 2010 and 2011 “as most of these companies would have reached critical mass by then”.
The fund had deployed about 86 percent of its capital as of 31 December 2008. Its transactions include investments in Oman’s Al Jazeera Steel Products Company; Jassim Transport & Stevedoring, a Kuwaiti integrated logistics company; and Planet Pharmacies, a UAE-based healthcare products retailer. In the year 2008, the three companies reported significant year on year growth both in terms of its revenues and net profits, GIH said.
The Global Buyout Fund makes investments in the Middle East, North Africa, Turkey, China and South Asia. It is focused on management buyouts, build-ups and growth equity investments and is targeting an annualised net internal rate of return of 20 percent.
The fund has a mandate to invest in a broad range of sectors with growth potential resulting from an increasing per capita income, favourable demographics and consolidation opportunities in the regions it invests in.
GIH's private equity funds group currently manages assets of about $3 billion. It has invested almost $1.5 billion in 55 deals across 11 sectors in the last four years. The firm has made 16 exits thus far, generating an IRR for about 67 percent as of December 2008.