MENA private equity group Abraaj Capital is one of three firms shortlisted to manage Jeddah-based Islamic Development Bank’s (IDB) Infrastructure Fund II, according to Business Emirates 24/7, an UAE news website.
Abraaj Capital declined to comment on the report.
The other two firms reportedly vying to manage the fund are Manara 3i, a joint venture between an infrastructure fund manager and global private equity firm 3i, and EMP Global, an emerging markets-focused private equity firm.
The fund will target $2 billion and will be seeded by commitments from the IDB, Saudi Public Pension Agency and the governments of several IDB member countries, a source in EMP told the news provider.
IDB and EMP Global could be be reached at press time.
The fund’s predecessor, the $730 million IDB Infrastructure Fund is currently managed by EMP Bahrain, an EMP Global subsidiary. It is presently being divested.
IDB Infrastructure Fund has invested in companies and projects in infrastructure sectors such as petrochemicals, power, telecommunications and transport, in countries including Saudi Arabia, Malaysia, Pakistan, Turkey, Oman, Bangladesh and the Republic of Guinea.
This month, Middle Eastern investment firm Abu Dhabi Investment Company and Swiss asset management giant UBS raised $250 million for the first close of the ADIC-UBS Infrastructure Fund I.
In March, global buyout firm The Carlyle Group raised $500 million for its first fund focused on the Middle East and North Africa region. The fund was originally targeting up to $1 billion, as previously reported by sister website PrivateEquityOnline. It will invest in sectors including energy and infrastructure.