HSBC has closed the first private equity fund focused on raising money in the GCC for regional investment to be launched by an international bank. The vehicle, called HSBC Private Equity Middle East, attracted total commitments of $118 million, only marginally below the $133 million target set when the fund was launched (MEED 31:5:02).
HSBC has seeded the fund with $33 million and a further $85 million has been raised by regional institutional investors.
The fund has also announced the closure of its first investment, buying into Bahrain-based Havelock AHI, a furniture manufacturer for the retail, hotel and leisure sectors in Bahrain.
The fund is a five-year closed-end vehicle, which is aiming at generating an internal rate of return of 25-30 per cent, according to David Knights, a director of HSBC's private equity business in the Middle East.
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