Abu Dhabi Investment House announces 20 per cent first-half returns for Al Arabi Private Equity Fund

The Fund which has tenure of five years was officially closed at the end of 2005 generating immense interest from regional investors. The Fund offered 7,400, 000 (Seven million four hundred thousand) shares with a par value of US$ 10 each to both individual and institutional investors, while ADIH retained 100,000 shares of the private placement as its contribution to the Fund. The Fund's shares are currently valued at US$12 each.

Commenting on the success of the fund in generating targeted returns, Mr. Rashad Janahi, Chief Executive Officer of ADIH said:

'The success of Al Arabi Private Equity Fund endorses our strategy of generating quality investment avenues for regional investors. The Fund could also capitalise on the tremendous interest for private equity investments in the regional market which is expected to touch the US$1 billion mark by 2007 from its current level of over US$300 million.'

The Fund had set a minimum investment target of US$100,000 for individual investors and US$250,000 for institutional investors.

'Through our extensive contacts and diligent monitoring of regional investment opportunities we could clinch several high-yielding investments for the Fund. Some of the major investments of the Al Arabi include in Al Ryan Bank of Qatar in which the Fund acquired a stake at the pre-IPO stage. We have also taken a substantial stake in the Bahrain-based leasing equipment bank, First Leasing Bank (FLB).'

'We are delighted with the excellent progress and returns being generated by the strategic investments made by ADIH on behalf of Al Arabi Fund. In line with our growth plan in the wake of the tremendous opportunities the regional private equity market offers, we are also planning a second edition of the investment instrument - Al Arabi Private Equity Fund - II, soon,' Mr. Janahi said.

The new fund will also look at investing in pre-IPOs, strategic private equity deals and mezzanine financing with focus on gaining full or effective management control.

Commenting on the Al Arabi returns and the future focus, Mr. Ali Mahmoud, Head of Investments in ADIH, said: 'Our strategy is to provide investors of Al Arabi Fund attractive risk-adjusted returns in relatively short periods of time. We believe that the key to the success of our investment products is a comprehensive due diligence process, indepth research prior to investment, a multi-tiered monitoring process and a viable exit strategy.'

Other investment opportunities offered by ADIH include the US$600 million Beirut Gate in Beirut Central District, US$86 million The Lagoon on Amwaj Islands in the Kingdom of Bahrain and a Euro 144 million German Property Fund. ADIH had also successfully closed a US$100 million private placement for Energy City Qatar in the UAE.