Khaleej Finance and Investment (KFI) is partnering with Kuwait Investment Company and Kuwait Finance House to manage a $200 million fund.

Three renowned financial institutions, Khaleej Finance and Investment (KFI) based in Bahrain, Kuwait Investment Company (KIC) and Kuwait Finance House (KFH)-Baytak- from Kuwait have signed a partnership agreement to manage and promote the ‘Indian Private Equity Fund’, a Sharia compliant $200 million fund, targeting a variety of activities with controlled risks in growing sectors, notably real estate and industry in India.

The fund is designed to reach an internal rate of return (IRR) exceeding 25 per cent at the end of the investment period of five years.

The CEO of KFI, Nabil Hadi, the general manager of Baytak Mohammed Al Omar and the Chairman of KIC Badr Al Sbei emphasized the importance of the ‘Indian Private Equity Fund’ that targets diversified investment sectors.

The fund represents a strategic step forward for all three institutions seeking to respond to the expectations of GCC investors and to offer investment vehicles and products that are able to achieve the best financial results with minimum risks.

The Sharia compliant ‘Indian Private Equity Fund’ has an investment period ranging between 3-5 years and is partially underwritten in Kuwait by Warba Investment Company.

“The ‘Indian Private Equity Fund’ constitutes a qualitative change in the activities of KFI and is designed to help the bank go beyond the regional level. KFI aims to become an internationally driven institution as we continue to expand and enter new markets. The ‘Indian Private Equity Fund’ enables KFI to compete with major investment institutions worldwide,” said Nabil Hadi, chief executive officer, KFI.

Hadi praised the partnership between KFI, KIC and KFH and added:

“This partnership comes as part of the Bank’s strategic vision of building alliances and strong long term relationships with banks and investment institutions in the GCC countries. KFI has already started to establish strategic alliances with institutions in Europe and Asia.”

Mohammed Al Omar, general manager of Baytak, said:

“The ‘Indian Private Equity Fund’ is a unique investment opportunity and we are delighted to take part in marketing this pioneering investment in a promising market.

“We found that the ‘Indian Private Equity Fund’ has diversified the targeted sectors and distributed the allocations in a way that satisfies investors and minimizes potential risks on their investments,” he added.

He said KFI’s strategic partnership with KIC and KFH should serve as a role model for future joint venture projects between GCC companies.

Nasser Al Sbei, chairman of KIC, announced that KIC and KFH are the co-managers, co-promoters and co-placement agents of the Indian Private Equity Fund, while KFI is the arranger, the lead manager, the co-promoter and co-placement agent.

He praised the overwhelming response that the fund has received in Kuwait since the commencement of offering.  

Sbei said: “KIC decided to be a part of the ‘Indian Private Equity Fund’ because it has all the factors that Kuwaiti and regional investors are looking for and our institution is keen to provide.

“Notably the flexible structure that takes into consideration diversification of risks and careful selection of investment spheres that target both industrial and real estate sectors.

“This is in addition to the fund’s team that is comprised of institutions and companies known for their experience and professionalism.”

Khaleej Finance and Investment has chosen India as a destination for this new fund due to several incentive factors that make the country one of the most dynamic foreign investment destinations in the world.

The Indian economy is the fourth largest economy in the world and has tremendous potential<