The kingdom's first private equity fund was launched on 29 October in Amman. Incorporated in the Cayman Islands, the Jordan Fund is aiming to raise $50 million, of which $20 million has been pledged by the government.
The government has made an initial subscription of $10 million into the closed-end fund and will pay the remaining $10 million once roadshows, scheduled for the coming weeks, have been launched for the private equity subscription.
For the private equity placement, institutional and high-net worth investors will be targeted in and outside the Middle East, although it is expected that most of the investments will come from within Jordan. The minimum investment for institutional investors has been set at $1 million, while for individuals, it is $500,000. The seven-10 year fund is expected to close in the first quarter of 2003.
The fund will invest in local private-sector companies, focusing on: firms that have been established to take advantage of free trade agreements signed with the US and others; consolidation and turnaround plays in established ventures; joint ventures; or direct investments by foreign investors. Typically, investments will be in the range of $3 million-7 million.
The fund has been structured by a consortium made up of Deutsche Bankwith the local Atlas Investment Groupand Foursan Group. The local firms will act as the fund's investment managers, while Deutsche Bank will be its international adviser.
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