A new fund aimed at channelling investment into middle market private equity closed with its first subscription exceeding $100 million. MapleWood Partners has raised an undisclosed but significant proportion of the fund in the Middle East, says Robert Glaser, one of the company's partners. Bahrain-based Arab Banking Corporation, Riyadh-based Rana Investments and Emirates Insurance Company are among the major institutional subscribers to the fund.

'We have raised money in the Middle East because we have considerable experience in the region and there is a strong demand for funds such as ours investing in overseas private equity,' says Glaser. Glaser himself has been involved in Middle East banking since 1978. He worked in the region for Chase Manhattan Bank and was a member of the original management committee of Investcorp, and spent 12 years at the investment bank. The other partner in MapleWood is Ali Musallam, a Saudi banker who is a former partner at Gefinor and also worked at Paine Webber (MEED 15:5:98).

'The fund has been set up to invest in US middle market companies,' says Glaser. 'We are already 10 per cent invested and aim to be fully invested within three to four years.' The first acquisition was of ComtelElectronics, a provider of electronics manufacturing services. 'We are going to continue raising money for this fund, which we hope will have grown to $200 million-300 million by next spring,' says Glaser. 'We also have ideas for other funds, and when these are launched we will be going back to the Middle East to raise money.'