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Mr. Al Muntafiq said:
"We are extremely pleased to announce this new fund as it is a perfect match for our overall objectives as an organization. Tailor made for Arab businesses, the fund is a positive step in assisting entrepreneurs. It is innovative and will help move businesses from concept to working reality. This type of funding will help build new streams of private sector income throughout our region. This is what YAL was formed to do and the new Alf Yad fund is an excellent lever to paving the way to achieving long term future success."
Investments by the Alf Yad Fund will span a wide range of categories, from venture capital provided to start-ups with exceptional business plans, to late-stage private equity funding that will help privately held companies take the steps needed to list on a regional exchange.
Investors in the fund will have the opportunity to benefit from the significant growth and development of regional businesses through a vehicle purpose built to optimize returns by careful target identification and active portfolio management.
Commenting on the fund launch and Daman's management involvement, Mr. Gargash stated: "We are very proud to have the chance to join hands with The UAE Chapter of The Young Arab Leaders and work together on this important new regional private equity initiative. This fund was formed specifically to invest in Arab businesses that lack capital but show potential for superior growth thereby filling a gap in current financial investment tools."
Unusual structure and affordable entry point
The Alf Yad initiative consists of 10 private equity funds that will be launched over 10 years, starting with Alf Yad Fund I in 2005. Each Alf Yad fund will raise and deploy AED 100 million to promising targets across the region. By 2015, Alf Yad will have raised and deployed AED 1 billion in private equity investments throughout the region. Investors in each fund will benefit from the growth of Arab businesses invested in by the Fund.
When asked about the innovative structure of the fund, Mr. Gargash replied: "Our goal is to make it attractive, affordable and a pool for developing new investors and new ideas. We structured this fund so that the entry level limits the risk of the early angel investors. Alf Yad literally means 'One Thousand Hands'. Since subscriptions by any one individual or corporate entity are set at AED 1,000,000 per fund, we will have 1000 such investors and, effectively 1000 thousand helping hands."
The amount of contribution by the investors in the ALF YAD Fund 1 has been AED one million for each individual or corporate entity. Investment contributions and commitments have reached 25% of the entire fund, even before the official announcement of this initiative.
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Posted by Anne-Birte Stensgaard, Senior News Editor
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