global opportunistic fund ii considers distribution to its investors
Dash: The Fund will distribute a total of USD 32 million
Global Investment House "Global" announced today that it is considering a further capital distribution to its Global Opportunistic Fund II investors for the third time in seven months, due to exit from its two major investments in the Zhaojin Mining Industry Limited and Reliance Petroleim Limited.
Mr. Shailesh Dash, Senior Vice President and Head of Private Equity at Global, said that Global's decision for a capital distribution is a result of its profitable investments in both China and India, as a result of the profitable exit from two investment, Zhaojin Mining Industry Limited and Reliance Petroleim Limited.
Dash continued, that the Fund's performance have surpassed our expectations thus reflecting our exceptional investment strategies in choosing the right time and regions to invest.
“Since the past year the gold and oil market has witnessed a substantial increase that enabled GOF II realize some profits, making it the third distribution and right time to exit the investments.”
The Fund witnessed positive growth since the funds two recent investments, in which it will distribute a total of USD 32 million to investors from the cumulative distributions made by the fund till date worth USD61 million, Making an implicit return of 84% in absolute term for these distributions.
GOF II first stake is in Zhaojin Mining Industry Limited, China’s second largest gold mining company in terms of gold reserves and GOF II was one of the select cornerstone investors of this company, GOF II second partial stake, is in Reliance Petroleum Limited, the largest private sector company in India with assets of around USD21 billion (as of 31 March 2007).
It is worth mentioning that Global launched the USD1 billion Pre-IPO and IPO fund just more than a year ago last April in Dubai, UAE. The fund focuses on 17 countries in the GCC, MENA & Asian regions including China, India, and Pakistan and is open to investors from all over the globe.
GOF II seeks capital appreciation with optimum returns, within controlled levels of risk, over the medium to long term by investing in IPO and Pre-IPO issues in the target countries. The Fund target IPO's of stable, mature and profitable businesses and invest by leveraging on the Managers understanding of the respective markets.
The fund is just more than a year old and despite the same, has been successful in meeting the liquidity expectations of its clients. The returns generated are also significantly higher than the target return of 20% pa.
