DIC, HSBC and Oasis raise $300m infrastructure fund

Dubai International Capital has jointly raised a $300 million infrastructure and energy fund with two other firms as the Middle Eastern investor continues at a frenetic pace.

Middle Eastern investment firm Dubai International Capital, global bank HSBC and Oasis Infrastructure Leasing have held a $300 million (€204 million) first close on a jointly managed infrastructure and energy fund, according to a statement.

The fund is targeting a $500 million final close and all three sponsors of the fund have committed undisclosed sums, the statement said.

The fund attracted investments from pension funds and financial institutions across Europe, the Middle East and North Africa.

Robert Swift, chief executive of the joint fund, said the investor response indicated their confidence in the region and the ability of the asset class to provide strong returns.

Rival investment firm Abraaj Capital is in the market for a $2 billion infrastructure and growth capital fund. Abraaj held a second close on $1.7 billion last month.

DIC’s recent spree includes Alliance Medical, which it bought from Bridgepoint for £600 million. It also said in a statement last week it had joined the Richard Branson’s Virgin Group in evaluating a bid for Northern Rock though it will not necessarily table a bid on Friday, the bid deadline.

Two weeks ago DIC bought Almatis from the Canadian firm Teachers’ Private Capital and European buyout firm Rhône Capital in the largest secondary deal since the problems in the credit markets began. Terms were undisclosed, but the bid had $1 billion of debt at more than six times debt to EBITDA multiples, according to someone close to the deal.

Three weeks ago the firm bought a 9.9 percent stake in Och-Ziff for $1.18 billion as the US hedge fund manager approaches an initial public offering.

The investment firm’s backer Dubai Holding is wholly owned by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. Dubai Holding contrasts its status with the Istithmar investment company, which is funded by the Dubai government. DIC also invests on behalf of high net worth clients.

Oasis International Leasing Company said in a statement it invests in high value leasing transactions primarily in the aircraft industry and increasingly in infrastructure.