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Global Buyout Fund distributes three per cent dividends

Global Capital Management’s Global Buyout Fund is declaring a distribution of three per cent, primarily derived from dividends and interest from portfolio companies and permitted tempor

Global Capital Management’s Global Buyout Fund is declaring a distribution of three per cent, primarily derived from dividends and interest from portfolio companies and permitted temporary investments.
 
Global Buyout Fund, a private equity fund managed by the alternative investment funds’ arm of Global, invests in buyout opportunities in the Mena region as well as in Turkey, China and South Asia.

Shailesh Dash, managing partner at Global Capital Management (pictured), says: ‘Most of the fund’s portfolio companies have reflected strong performance and have declared dividends’. 
 
For 2008, Al Jazeera Steel Products reported a significant growth of 76 per cent in its revenue on a year on year basis. Despite adverse economic conditions in the last quarter of 2008, the company was able to grow its 2008 net profit by around seven per cent.

Planet Pharmacies top line grew by around 51 per cent while its bottom line increased by more than 125 per cent in 2008 versus 2007. As the company operates in the health sector, it has a recession resistant business model.

2008 has also been a good year for Jassim Transport and Stevedoring in terms of growth in its business and generation of record profits. The company’s top line grew by 25 per cent and net income by 28 per cent in 2008 versus 2007.

Dash adds: ‘We have adopted a two pronged strategy for the fund’s returns; our prime focus is to increase the intrinsic value of its investments through hands on approach; we also simultaneously strive to give our investors some regular returns. Along with the return, we also focus on reducing overall portfolio risk through diversification. As a case in point, at present, all the fund’s investments are in different sectors and countries’.

The private equity funds group at Global currently manages about USD3bin of private equity assets for clients. The team has invested nearly USD1.5bn in 55 transactions across 11 sectors in Middle East and North Africa, Turkey, South Asia & China during past four years. The team has also successfully managed 16 exits generating an IRR of around 67 per cent as of December 2008 for its existing investor base which comprises international and Mena institutional investors.

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