The private equity arm of Abu Dhabi-based The National Investor (TNI) and Kuwait-based KIPCO Asset Management Company (KAMCO), will together raise a $150 million Shariah-compliant private equity fund.
Fundraising for the vehicle will begin within three months, a TNI spokeswoman told sister news site PEI Asia. TNI and KAMCO will each commit $15 million to the fund, while the remainder will be raised from third party investors.
The fund will make six to seven investments and will invest an average of $25 million of equity in each deal. It will be focused on mid-sized, family-owned companies in the Gulf region.
The fund will particularly target companies that are faced with financial difficulties or require operational restructuring.
There are a number of family businesses that have over-reached in terms of their business interests, and will now look to divest certain interests as they narrow their focus to their core business activity, according to the firm.
TNI currently manages the TNI Growth Capital Fund I, which primarily makes late stage growth, pre-IPO and LBO investments in the GCC countries, Egypt, Pakistan, India, Jordan and Lebanon. The firm also makes direct investments from its balance sheet. The firm’s private equity practice was set up in 1994. Since then, it has made more than 24 investments.
Established in 1998, KAMCO is a subsidiary of Kuwait Projects Company, one of the Middle East’s largest holding companies. The firm is focused on providing asset management and financial services. Its private equity department manages the Kuwait Private Equity Opportunities Fund and the Kuwait Education Fund. It also manages the National Investment Fund Portfolio, which invests in small and medium enterprises on behalf of the Kuwait Investment Authority.