Business | Investment
Al Arabi fund returns 22% after second partial exit
Abu Dhabi Investment House (ADIH) announced on Saturday the second partial exit of Al Arabi Investment Fund, generating an annual internal rate of return (IRR) of 22 per cent, compared to a projected 20 per cent promised to the fund's subscribers when the fund was launched in 2005.
- Staff Report
- Published: 23:37 May 10, 2008
Abu Dhabi: Abu Dhabi Investment House (ADIH) announced on Saturday the second partial exit of Al Arabi Investment Fund, generating an annual internal rate of return (IRR) of 22 per cent, compared to a projected 20 per cent promised to the fund's subscribers when the fund was launched in 2005.
This announcement comes after four months of announcing the first partial exit of Al Arabi Fund earlier this year.
The fund is a diverse range of GCC private equity positions, including underlying investments in a variety of economic sectors. The steady stream of deal opportunities ADIH has access to, has allowed the fund to select from a wide range of investment alternatives enabling it to achieve a balanced portfolio with optimised returns and diversified risks.
ADIH, the fund manager, set a target IRR of 20 per cent per annum over the fund's five-year life. The second partial exit was a result of exiting three key investments in: banking, real estate and industrial sectors.
The successful realisation of these investments was translated into an IRR of 22 per cent per annum; a gross distribution of $2.96 per share which includes a profit distribution of $ 1.09 per share and partial capital repayment of $1.87 per share.
Towards end of 2007, ADIH announced the exit from the Lagoon Fund, whose return on investment (RoI) was 30 per cent compared to an expected RoI of 27.5 per cent.
"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," said Rashad Janahi, ADIH board member and managing director.
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