Qatar Islamic Bank, its investment banking arm QInvest and Silver Leaf Capital have signed in London a memorandum of understanding to establish the Dhow Gulf Opportunities Fund as the firs
Qatar Islamic Bank, its investment banking arm QInvest and Silver Leaf Capital have signed in London a memorandum of understanding to establish the Dhow Gulf Opportunities Fund as the first stage of a USD1bn private equity business focusing on Qatar.
The fund will be managed by Dhow Investors Advisor, a company jointly owned by QInvest and Silver Leaf, which will operate from the Qatar Financial Centre in Doha. Qatar Islamic Bank will be the anchor investor and act as the lead distribution agent in Qatar and senior distribution agent outside the country through its affiliates in the UK, Lebanon and Malaysia.
The fund’s sponsors are aiming to attract foreign investors to the region in general and Qatar in particular and are targeting sectors including telecoms, environmental technologies, media, oil and gas, and infrastructure. The first closing of the Dhow Gulf Opportunities Fund is set for the end of June. A separate international Shariah-compliant private equity fund will be launched later with international partners
‘The interest of QIB on the private equity market was an initiative driven by our chairman Sheikh Jassim bin Hamad bin Jabor al-Thani,’ says chief executive Salah Jaidah. ‘We initiated this project about six months ago. Today we are delighted to see this project taking place, reinforcing QIB’s pioneering role in the Shariah-compliant banking industry.
‘This is the first large-scale private equity fund in Qatar. Our objective is to invest in diverse sectors that will allow technology migration and transfer of know-how to Qatar, and we already have about USD300m of investment opportunities in the pipeline that Dhow Investors Advisor is evaluating. Private equity will contribute to the growth of local Qatari companies.’
Abdulatif Almeer, chief executive of Qinvest, says: ‘The opportunities within private equity are tremendous and this is the right time to establish Dhow Investors Advisor. We have been able to partner with a team of high-calibre experts with more than 50 years’ combined private equity experience.’
The Dhow Investors Advisor team will work with Silver Leaf founding partners Jeffery D’Souza and Vincent Keith, both of. D’Souza has extensive experience in private equity and worked for Deutsche Bank’s global markets division, while Keith has held various senior positions at ABN Amro, Deutsche Bank and Goldman Sachs.
‘The partnership with solid entities like QInvest and QIB, combined with our know-how, will bring a new era for private equity in Qatar and the Gulf Co-operation Council region,’ Keith says. ‘We have ambitious objectives and are looking forward to be among the top five Middle East, North Africa and South Asia private equity funds.
The fund will have an advisory board including prominent Qatari and international business people, with a chairman nominated by Qatar Islamic Bank and QInvest, while its management board will includes senior Dhow Investors Advisor team members and bank representatives. The Qatari institutions will also designate members of the investment committee.
‘Apart from being the anchor investor, QIB has agreed to partner with Silver Leaf in structuring and financing the investments within the fund,’ says Jean-Marc Riegel, general manager of the bank’s investment banking and development group.
‘This opens major opportunities for corporate financing. Via the fund, new companies will be established in Qatar and will need financing for their start-up period. QIB will play a major role in structuring this financing, while its affiliates will be involved in the distribution of the fund and in providing financial services to the newly-established companies.’
