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Fajr buys out DIC’s stake in Mena fund

Fajr Capital Limited has acquired Dubai International Capital’s stake in $300 million worth the Mena Infrastructure Fund.

An official source confirmed the acquisition to Khaleej Times without putting a value on it.

“Fajr Capital has acquired Dubai International Capital’s GP (General Partner) and LP (Limited Partner) stakes in the Mena Infrastructure Fund,” the source said.

Elaborating further, the source said, “The General Partner stake is one-third, which gives Fajr Capital an equal share with the other co-sponsors, HSBC and Waha Capital.”

Fajr Capital will take its place alongside the two other general partners and co-sponsors of the fund, HSBC Bank Middle East and Abu Dhabi-based Waha Capital, and will also be a limited partner with other regional and international investors, a press release said.

David Smoot, chief executive, Dubai International Capital, said: “This is another successful exit for DIC and follows a string of profitable exits of regional portfolio assets in recent months.”

Backed by Abu Dhabi Investment Council, Fajr Capital is an international Islamic investment firm with a focus on financial services and other strategic sectors in key Muslim markets. Its other partners include Saudi Arabia’s diversified business house Al Subeaei Group, the Government of Brunei Darussalam, the HSBC Group and Khazanah Nasional.

The Mena Infrastructure Fund is its second investment this year, and the transaction strengthens Fajr Capital’s position in the Mena region. It builds exposure in the key markets of Egypt, the Sultanate of Oman and the Kingdom of Saudi Arabia, increases the firm’s assets under management and brings in a dedicated team of investment professionals with a strong track record in the Mena infrastructure and energy sectors.

The Mena Infrastructure Fund is a $300 million Dubai-based specialist asset manager established in 2007 by Dubai International Capital, Waha Capital and HSBC to invest in infrastructure and energy projects in the Middle East and North Africa. Its three investments to date are strong, stable projects in key markets. Alexandria International Container Terminals runs terminals in Egypt’s two main commercial ports, Alexandria and Dekheila, in partnership with international operator Hutchinson Port Holdings. United Power Company runs a 270 megawatt power plant in Manah, Oman, and is the region’s first independent power project with private sector participation.

Qurayyah IPP is a 3,927 megawatt power plant under construction in Qurayyah, Saudi Arabia and is the largest combined cycle gas fired power plant project in the region.

Adib Al Zamil, chairman of Fajr Capital, described the transaction as an important milestone for the firm. “This investment combines several commercial advantages: high-quality infrastructure assets, a seasoned management team and the platform to launch further funds with world-class partners,” Al Zamil said.

Mark Lemmon, CEO of the Mena Infrastructure Fund, said the deal “will help us to continue to be successful.”

Commenting on the transaction, Hussain Jasim Al Nowais, chairman of Waha Capital, said his company remains “committed to supporting the growth and development of strategic infrastructure assets.”

haseeb@khaleejtimes.com