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Global Opportunistic Fund II unveils third distribution to investors

Kuwait-based Global Investment House is planning a further capital distribution to its Global Opportunistic Fund II investors for the third time in seven months, following profitable exits

Kuwait-based Global Investment House is planning a further capital distribution to its Global Opportunistic Fund II investors for the third time in seven months, following profitable exits from major investments in China’s Zhaojin Mining Industry and Reliance Petroleum in India, according to senior vice-president and head of private equity Shailesh Dash.

Dash says that the fund’s performance has surpassed Global’s expectations. ‘Over the past year the gold and oil markets have witnessed substantial growth that has enabled GOF II to realise profits, making it the right time to exit the investments,’ he says.

The fund has enjoyed positive growth as a result of its two recent investments and will distribute a total of USD32m to investors, bringing the cumulative distributions to date to USD61m. The investments have achieved an implicit return of 84 per cent in absolute terms.

GOF II was one of the cornerstone investors in Zhaojin Mining Industry, China’s second largest gold mining company in terms of gold reserves, while Reliance Petroleum is the largest private sector company in India with assets of around USD21bn at the end of March.

Global launched the USD1bn pre-IPO and IPO fund, which is domiciled in Dubai in April 2006. The fund focuses on 17 countries in the Gulf, Middle East, North Africa and select Asian countries including regions including China, India and Pakistan, and is open to investors worldwide.

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 of stable, mature and profitable businesses in the target countries. So far the returns generated have been significantly higher than the targeted annual return of 20 per cent.

Global Investment House is a investment company established in Kuwait in 1998 and now has branches and affiliates in Bahrain, Dubai and Abu Dhabi, Jordan, Qatar and Sudan. The company’s current assets under management reached KWD2.39bn (USD8.3bn) at the end of June.

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