The new technology fund launched by BMB Investment Bank has raised $70 million, well above the original target of $50 million (MEED 14:1:2000).
BMB Technology & Telecommunication Investment Company is a closed-end fund of funds that will buy into private equity vehicles in Europe and North America. The fund’s approach is based on ensuring there are a large number of underlying investments, and that they are well diversified. It will take positions in funds that invest in technology and telecoms infrastructure, software systems and web-based and wireless applications.
The BMB Tech fund will also rotate its positions so it maintains exposure to companies at different stages of their development, from early stage venture capital to companies on the cusp of initial public offerings (IPOs).
‘At present we have invested in seven funds,’ says a BMB official. ‘We are aiming to increase this to 10-12 funds.’
The bulk of the $70 million was raised from GCC markets, and the bank says there was a particularly good response from Kuwaiti investors.
BMB has, for some time, produced impressive returns from its technology- related investments: it has generated an internal rate of return of 94 per cent in this field over the last three years (MEED 28:1:00).