Qatar-based alternative investment firm Corecap this week launched an Islamic private equity fund with some US$150 million in committed capital. The new offering, Corecap Islamic Private Equity Fund I, will make shariah-compliant investments in businesses in the Middle East and North Africa.
“The favorable regional macro-economics conditions resulting in GDP growth exceeding 7% p.a. in most countries, large forex reserves, reasonable inflation, real and budget surpluses have encouraged international and regional investors to seek investments in the region,” said Sheikh Mohamed Althani, chairman of Corecap. ”With abundant liquidity, underperforming capital markets and scarce investment products, a niche for investment opportunities in alternative asset classes has risen.”
According to Khaled Hassan Rashed, CEO and board member the new fund, CIPEF I is a close-ended six-year fund targeting a minimum internal rate of return of 25% annually. It is open to institutional and high net worth and investors with a minimum investment requirement of US$ 3 million. The fund will be overseen by an independent board comprised of shariah'a scholars.
Corecap was founded by Althani, who is the former minister of economy and commerce in Qatar, Rohit Walia who is the CEO and managing director of Swiss banks Bank Sarasin-Alpen and Alpen Capital, and by CorePartners, an investment management firm comprising a team of private equity professionals, including Rashed.