MENA Infrastructure, the Dubai-based fund manager, will start fundraising for its second vehicle in October this year.
The firm is targeting $500 million in commitments from investors in Europe, the Middle East and Asia. It is aiming for a first close in March 2015 and hopes to seal its first deal shortly after, according to reports.
The fund will primarily invest in the energy and infrastructure sector, with an emphasis on the Gulf, North Africa and, for the first time, Turkey. The firm is said to have identified 24 potential targets for investments over the next five years, while aiming to deploy up to $50 million per deal in a maximum of 10 deals.
The vehicle follows in the footsteps of its predecessor, which closed in 2007 on $300 million and is invested in energy and infrastructure assets across Egypt, Oman and Saudi Arabia.
Fund I’s limited partner (LP) base includes US pension California Public Employees' Retirement System (CalPERS), US foundation Mayo Clinic, Abu Dhabi investment firm Waha Capital and Dubai-based Fajr Capital. The latter bought its stake in the fund from Dubai International Capital, the private equity arm of Dubai Holding, in August 2012.
“[Fund II] will focus on the key geographies of the first fund and will also include Turkey, a dynamic and fast growing infrastructure space. There is an excellent pipeline for new investments and the investment team and sponsors have a deep network across lead developers in the region, as well as solid reputation with governmental authorities,” MENA Infrastructure said on its website.
The company is jointly owned by HSBC, Fajr Capital and Waha Capital.
Fajr Capital, which will manage the second fund alongside Waha Capital, is itself backed by the Abu Dhabi Investment Council, the government of Brunei, Malaysia’s sovereign wealth fund Khazanah Nasional, and Saudi trading house Al Subeaei Group. The Abu Dhabi government also holds a 15 percent stake in Waha Capital.