Global, Millennium raise $500m Shariah fund

The two Middle Eastern firms and regional bank Dubai Islamic Bank have raised a Shariah-compliant vehicle that will invest alongside Global Investment House’s planned $1.5 billion global fund.

Middle Eastern investors Global Investment House, Millennium Capital and Dubai Islamic Bank have raised $500 million (€329.3 million) for a Shariah-compliant fund.

The fund will invest alongside the Shariah-compliant deals of Global Investment House’s planned $1.5 billion global buyout fund, which held its first close on $550 million in November last year, according to a statement. This fund will also have an Islamic component of $500 million, PEO was told last year. 

Both funds will invest in companies in the Middle East and North Africa, as well as Turkey, China, India and Pakistan.

One-third of the $550 million this fund raised has already been committed across three acquisition, including a 15.4 percent stake in the Bank of Bahrain and Kuwait. The fund’s asset valuations have increased to 1.12 times book value, the firms said.

The Shariah board for the fund will be headed by Hussain Hamed Hassan, chairman of the Shariah board of Dubai Islamic Bank.

Regional investment firm Dubai International Capital also said yesterday it was planning to raise a $500 million Saudi Arabian fund.

The regional fundraising drive will be one of many topics under discussion at Private Equity International’s Middle East Forum today and tomorrow.