algebra capital launch alpha mena fund
Regional Markets Prove Attractive to International Investors Looking to Capitalize on Expected Growth in 2008
Algebra Capital announced today the launch of its Alpha MENA fund. The fund, which is targeting $500m, will adopt long only positions in shares across the MENA region, giving international and regional investors exposure to MENA equities through its innovative structure and active investment strategy.
“We believe now is the time to invest in MENA equities,” said Joe Kawkabani, Managing Director, Asset Management, Algebra Capital. “Strong economic growth, attractive valuations compared to other emerging markets, and lack of correlation with global equities create an attractive environment for international investors. Over 80% of initial investment in to the ALPHA MENA fund has come from global investors, attracted by Algebra’s investment process and experienced management team.”
Key target sectors for the fund include financial services, construction, petrochemicals & fertilizers and logistics & transportation. The fund offers international investors exposure to MENA equities usually unavailable to them because regional stock exchanges are not fully open to foreign capital.
“During our trips to the US and London we felt a huge appetite from investors demanding exposure to our region. We anticipate that this fund will enable them to benefit from MENA regulatory change with privatizations and IPOs of state and infrastructure assets offering investors superb opportunities for [long]-term returns,” added Kawkabani.
In its first six months of operation, Algebra Capital has reached over $200m in assets under management. In September of this year, Algebra announced a strategic partnership with Franklin Templeton, the $650bn global asset manager, which saw the leading global asset management company take a 25% equity stake in Algebra.
Algebra Capital was also appointed by Schroders, the $276bn global asset manager, as a sub-advisor to their ISF Middle East fund. From their headquarters in the Dubai International Financial Centre, Algebra Capital is well placed to capitalize on regional opportunities within their geographic mandate that extends across the Middle East, North Africa, GCC and emerging Asian regions.
Led by a first-rate management team with an established track-record in both operating financial institutions and successfully managing money in the Middle East, North Africa and emerging Asia (MENASIA) regions, Algebra Capital is set to become the institutional investor’s partner of choice in these markets.
