HBG Holdings announces second close of its $200m HBG Investment Holdings Fund 1

The firm specializes in acquiring and restructuring distress assets in the region and has generated superior returns for its investors from such investments.

The second closing comes at a time when the company is experiencing strong demand from its investors for a wider range of alternative investment opportunities and is expanding its team internally to meet this demand.

The launch of this pan-regional investment fund will enable the company to target larger direct investments across the region and will focus primarily on investing in mature businesses that require a change of direction or capital restructuring.

The fund is being subscribed to by high net worth individuals and family offices but there has also been strong interest from financial institutions in the region. The new fund will be invested over the next 18 to 24 months and during that time HBG will be looking to raise additional sector specific funds. The final close of the fund is likely to be announced by the year end.

Commenting on the second close, Zulfi Hydari, Managing Director of HBG Holdings said: "Over the last three years we have focused on non-traditional private equity strategies to generate superior returns for our investors. We have been very successful in the turnaround space and carved out our own niche in this area, and we know the consumer goods sector particularly well. The strong operational capability of our team is unique and it is what has made us successful. We intend to leverage this capability as we move forward by focusing on restructuring opportunities such as non-core assets of large conglomerates. HBG is one of the only firms in the town that looks at turnarounds and restructuring opportunities."

Since the company's launch in 2004, it has successfully raised capital from regional investors through a series of special purpose vehicles (SPV's) set up to acquire specific assets but the new investment vehicle is the firm's first traditionally structured fund. The experience and track record of the HBG team has enabled the firm to raise capital in record time and at nearly double the original target.

Hydari added: "We are particularly delighted at the spread of investors from Saudi, Oman, Qatar, Bahrain and the UAE who have decided to invest. It is a sign of the growing confidence in the HBG team and its ability to deliver superior returns."

The fund was launched in February 2007 and the first closing was announced in June 2007 at $45m. It is targeting returns of at least 20% IRR per annum.