The Fund has sold a 40% stake in Orimix Concrete Products LLC (Orimix), a leading readymix concrete supplier to the East Coast of the United Arab Emirates (UAE) and Oman, resulting in a Return on Investment (ROI) of 36%. The Fund continues to hold a 55% stake in the company.
The Fund was able to complete the early partial exit as a result of significant improvements in Orimix's performance over the course of the preceding year. A post-investment committee formed to work with Orimix's management team has already succeeded in institutionalizing the company's processes and systems, implementing an integrated IT system, investing in new readymix trucks and pumps and introducing a new management incentive plan.
Commenting on the exit, Aamir Khan, Head of Global Private Equity at Unicorn Investment Bank (the Fund's Investment Manager) and Chairman of the Investment Committee of the Fund, said: "The active involvement of the Fund's Investment Manager in restructuring Orimix and improving the company's processes was pivotal in allowing us to achieve this successful early exit. We continue to be actively involved in the management of Orimix, and are confident of its success."
In addition to its investment in Orimix, the Fund has also completed investments in Kuwait-based industrial holding company Al-Assriya Industries Holding Company as well as two US-based companies: Ellington Leather, a lifestyle handbag and leather goods company; and Precision Time, a leading provider of while-you-wait watch repair services, fashion watches and watch accessories with a rapidly expanding presence across the United States.
Unicorn Investment Bank and Al Safat Investment Company, the Fund's Investment Advisor, recently announced the launch of a second round of capital raising for the Fund, with the aim of achieving a final close by 30 June 2007. The Fund's objective is to achieve mid- to long-term capital appreciation by acquiring positions in existing businesses and to create value through the use of prudent leverage, consolidation, financial restructuring, operational enhancements and the granting of management incentives. The targeted geographic breakdown of the Fund is 50% in the GCC region, 25% in the Levant and Turkey, and 25% in the United States and Southeast Asia.
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Unicorn Global Private Equity Fund I announces successful first exit
- Bahrain: Tuesday, June 19 - 2007 at 12:37
- PRESS RELEASE
Unicorn Global Private Equity Fund I announces its successful first exit from one of its major investments.
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About Unicorn Investment Bank• Unicorn commenced operations on 5 May 2004 in the Kingdom of Bahrain; and it has been profitable in every year since its inception.
• In July 2006, Unicorn doubled its capital following a successful round of capital raising.
• Unicorn has achieved a number of "firsts" in Islamic banking. In November 2005, the Bank closed the "KSA Real Estate Fund I", the first ever equity fund to allow non-Saudi nationals to invest in the growing Saudi Arabian property market via an innovative financial and legal structure.
• In May 2006, Unicorn launched "Gulf Springs", the first pan-GCC real estate fund, in partnership with leading real-estate developers in each GCC market.
• In 2006, Unicorn acquired a 22.22% equity stake in First Dawood Islamic Bank, a newly established Islamic bank in Pakistan.
• In July 2006, Unicorn, working in partnership with a multilateral organisation, closed the "KSA MBS I International Sukuk", the GCC's first Shari'ah-compliant asset-backed security: a debt product designed for home financing companies in the Kingdom of Saudi Arabia (akin to a mortgage-backed security).
• In September 2006, Unicorn and WestLB successfully closed a US$150m Musharaka Trust Sukuk for Kuwait's Investment Dar. This was the first Musharaka Sukuk structured with a put option for the investors and a call option for the issuer.
• In July 2006, Unicorn successfully completed the first closing of its Global Private Equity Fund I, a five-year closed-end fund offering investors the opportunity to participate in Shari'ah-compliant private equity investments globally.
• In February 2007, Unicorn, WestLB, ABC Islamic Bank E.C., Arab National Bank and Standard Bank Plc. (together the Joint Lead Managers) closed a landmark 3-year US$600 million Sukuk al-Ijara issue on behalf of Dar Al Arkan Real Estate Development Company (DAAR), a leading residential real estate developer in the Kingdom of Saudi Arabia. Unicorn also acted as structuring agent and Shari'ah advisor. The DAAR Sukuk marked the first international Sukuk issue for a Saudi corporate.
• Since its inception, Unicorn has already advised, structured and successfully placed deals with a total value approaching US$2 billion.
Media Contacts:
Mai AlJishi
Unicorn Investment Bank, Bahrain
Tel : +973 17566071
Mark Lunn
Gavin Anderson & Co, London
UK Tel: +44 (0) 20 7554 1400
Posted by Lara Lynn Golden, News EditorTuesday, June 19 - 2007 at 12:37 UAE local time (GMT+4)
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This article was updated on Sat Jun 23 2007.
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