GOF II will invest in IPO and pre-IPO opportunities in 17 countries including the GCC states, Iran, Lebanon, Jordan, Sudan, China, India and Pakistan. Target sectors include financial services, consumer-related industries, healthcare, real estate and construction and infrastructure and energy.
Its first investment of $30 million has already been made in an Indian grassroots refinery planned by domestic refiner Reliance Industries. Other transactions in the pipeline include investments in petrochemicals and telecoms companies in Saudi Arabia, financial and mining firms in China and gas distribution ventures in Pakistan.
Minimum investment in the five-year, closed-ended fund is $1 million, with a lock-up of at least a year. The targeted internal rate of return is 20 per cent. GOF II is domiciled in Bahrain. Global will invest $50 million of its own capital in the fund.
'The idea is to diversify from the first fund, and to allow subscribers to invest in privatisation and family business opportunities in the wider MENA [Middle East & North Africa] region and in the high-growth Asian economies,' says Shailesh Dash, senior vice-president of Global's strategic investment group. A maximum of 40 per cent of the fund will be invested within the GCC.