Al Arabi Private Equity Fund’s partial exit will be another over-performing deal by Abu Dhabi Investment House (ADIH), recently announced by the investment house.
The partial exit, which is scheduled for the beginning of the new year, will generate an internal rate of return (IRR) of 25%, compared to the projected 20% that was promised to the Fund’s subscribers when the fund was launched in 2005.
The Fund is a diverse private equity portfolio, including underlying investments in a variety of economic sectors. The steady stream of deal opportunities ADIH has allowed the Fund to select from a wide range of investment alternatives and enabled it to arrive at a balanced portfolio with optimized returns and diversified risks.
ADIH, the fund manager, set a target IRR of 20% per annum over the fund’s five-year life. Partial investments, which relate to Finance, Real Estate and Aerospace industries and were made through a thorough and disciplined process, were exited in the best interest of the Fund. The successful realization of these investments was translated into an IRR of 25%.
The higher than forecast returns come fast on the heels of another successful ADIH transaction which was announced recently: the exit from the Lagoon Fund, whose ROI of 30%-- compared to an expected ROI of 27.5%-- brought actual return to investors to over 2.5% more than what was expected.
Rashad Janahi, CEO, ADIH, said, “As one of our key focus areas, private equity investment is especially interesting because of the unlimited opportunities available.
“The better than expected performance of Al Arabi Private Equity Fund is testament to ADIH’s proven ability to not only select the right investments, but more importantly, to devise prudent exit strategies.”
ADIH was established in 2005 by its founder and CEO, Rashad Janahi, with key business areas including private equity, corporate finance, real estate and asset management. Its current portfolio consists of funds and investments across the Gulf, including Bahrain, Saudi Arabia, Kuwait and Qatar. ADIH’s real estate portfolio, which has been its most active line of business over the past year, includes large scale commercial, residential and retail property developments, the most notable of which are The Lagoon, Sunset Hills and Porta Reef in Bahrain, as well as Qatar Entertainment City, a mega development in Lusail, Qatar.
