Al Masah Capital Ltd first GP in Mena region to endorse ILPA guidelines

The ILPA documents were developed through the collaboration of many institutional private equity investors and their senior investment officers, the ILPA and the Private Equity Principles and Best Practices Committee of the ILPA Board of Directors. The best practice document is aimed to recommend terms to enhance fund governance and transparency and correctly align interests between general partners and limited partners.

"Endorsement of these Principles is an indication of general support for the efforts of the ILPA and industry supporters to contribute to an effort to strengthen the basic "alignment of interests" value proposition in private equity," said Shailesh Dash, founder, Al Masah Capital Limited.

Some of the terms that have been recommended by the ILPA document include formation of a Limited Partners Advisory Committee for approval in conflict of interest issues, ability of supermajority of LPs to elect to dissolve fund or remove GP without cause, a key person event to result in automatic suspension of the investment period with an affirmative vote required to reinstate it and waterfall structure to include return of all fees and expenses till date of exit (as opposed to pro rata for the exited deal).

With his previous employer, Shailesh established and led a Mena based private equity business, which under him became the 16th largest private equity business in Asia (as ranked by PEI Asia in June 2009). It also received a number of awards, including Terrapinn Middle-East Private Equity Fund of the Year 2007 and 2008 and Terrapinn Middle Market Deal of the Year 2008.

During his tenure with his previous employer, Shailesh and his team managed $3.2bn AUM and had invested in 55 Private Equity transactions. During this time, Shailesh also managed 16 exits generating a gross IRR of above 65% as of December 2008.

Al Masah will soon be launching $500m Mena Growth PE Fund focused on mid market growth capital opportunities; the Fund will consider both buyout and significant minority stakes.

Mr. Dash added, "We are already looking at a number of opportunities in the healthcare and education sectors; they will initially be acquired by one of our investors; after the first close, our PE fund will have the right to take 50% stakes at the initial acquisition price."