The Fund has been raised from a select club of South African and GCC-based investors. The success of its direct investment strategy in South Africa thus far has induced Invescape to establish a captive private equity fund focused on this exciting emerging market and enlarge its management team.
Muhannad Al Ashram, Invescape’s Chairman, felt the investment case for South Africa was compelling: “South Africa is one of the most sophisticated and attractive emerging markets globally. The highly developed first world financial infrastructure and hugely expanding middle class has given rise to a strong, entrepreneurial and dynamic investment environment. In the face of a global economic slowdown, South Africa’s diversified trade across a range of sectors and markets has remained resilient”.
The Fund which will be 50% owned by a Black empowerment group in South Africa and will focus on achieving superior returns from the investment of equity, equity-linked and debt instruments in companies operating in the South African retail and engineering sectors. Over the last two years Invescape has been working on developing several transactions in its pipeline and it is anticipated that almost 25% of the Fund will be invested in its first quarter.
“The South African retail and engineering sectors provide an attractive investment opportunity because of South Africa’s rapidly expanding middle class, world-class financial services sector, excellent infrastructure, good skills base, cost effectiveness and new global focus” said Firdhose Coovadia, Chief Executive Officer of Invescape.
“South Africa is the economic engine of Africa and with the Government’s promotion of foreign direct investment, has proven itself to be a highly competitive investment location”, he added.
Invescape has opened an office in Sandton South Africa which is being staffed by a team of South African investment professionals.
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