The National Bank of Kuwait has launched NBK India Private Equity Fund, a fund of funds which will invest in India.
Salah Al Fulaij, chief executive officer of NBK Capital, said in a statement that the fund will be raising capital from private banking clients who will get the opportunity to invest in Indian companies through a select group of investment managers.
He added that the fund would invest through private equity funds in companies in India and in other parts of Southwest and Southeast Asia. The fund aims to build a balanced portfolio and as such, the investments will be spread across a number of funds investing in various sectors, he said.
The fund of funds will also make secondary investments.
Al Fulaij said that there is great opportunity for private equity in India as a lot of competitive, rapidly growing companies in the country are beginning to value the importance of private equity investments in improving their businesses and taking them to the next level.
The NBK India Private Equity fund is targeting an IRR of 20 percent per annum. Its expected size has not been disclosed yet.
The National Bank of Kuwait also manages the NBK Private Equity Fund which makes co-investments and direct investments in the US and other international markets across diverse sectors in buyout, venture, mezzanine, distressed and other segments.
In addition to these two private equity funds, the bank’s investment and merchant banking subsidiary NBK Capital manages private equity funds separately. It recently closed the $125 million (€79 million) Kuwait Investment Opportunities Fund which makes investments domestically.