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Dubai: Global Investment House and Dubai Islamic Bank (DIB), in collaboration with Millennium Capital, have signed a memorandum of understanding (MoU) to launch the Global DIB Millennium Islamic Buyout Fund, a private equity fund targeting aggregate commitments of $500 million.
The fund will invest in buyouts of Sharia-compliant companies in parallel with the Global Buyout Fund, which had its initial closing in November 2007 upon receiving aggregate commitments of $550 million and has already invested or committed more than a third of it in three acquisitions.
The MoU was signed by Maha Al Ghunaim, chairperson and managing director of Global, and Khalid Al Kamda, group managing director and chief executive of Dubai Islamic Bank.
"We manage approximately $1.6 billion in private equity and believe that this asset class will dominate the region in the coming years as it is well-suited for the region's macroeconomic factors, such as sustained economic growth, implementation of reforms that facilitate foreign direct investment, and an increased willingness of governments to privatise state-owned entities in a variety of sectors," said Omar Al Quqa, executive vice-president of Global.
The Global Buyout Fund focuses on buyouts in the Middle East and North Africa (Mena), Turkey and South Asia.
"The fund is suited for sophisticated investors from the region who have a preference for Islamic products but do not come by private equity products often," said Omar Masrur, head of private equity of Millennium Capital, the investment banking arm of DIB.
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