Dubai-based Abraaj Capital and India's Sabre Capital have formed the $250 million Sabre Abraaj Capital Fund. The seven-year fund will invest in Indian companies seeking growth capital and in listed equities. Abraaj and Sabre have jointly committed $50 million-75 million to the fund, which is nearly fully subscribed ahead of its expected closing in June. The fund has a minimum subscription of $10 million and an expected internal rate of return (IRR) of 20-30 per cent.
The fund is scheduled to start investing in 2007 and will target the retail, IT, automotive, travel, leisure and entertainment and healthcare sectors. 'India has millions of entrepreneurs who want to grow and achieve scale, who will need capital and a partner willing to advise them as they make the transition from family enterprise to a professionally managed national, then international, enterprise,' says Sabre Capital chairman Rana Talwar. The fund will consider listing companies it has invested in on the Dubai International Financial Exchange (DIFX).The fund is Abraaj's first single country venture and the company has plans to target Egypt, Pakistan and Saudi Arabia.