National Bank of Kuwait (NBK), the leading bank in Kuwait, yesterday announced the launch of a dollar-denominated closed-ended investment fund targeted at Indian companies.
The fund requires a minimum investment of $500,000 (Dh1.83m) and an offering price of $1,000. The fund is for a 10-year period, and the possibility of extending it for an additional two one-year periods.
The offering period started on May 4 and ends on June 5.
Salah Al Fulaij, Chief Executive Officer of NBK Capital, said that the fund will offer private banking clients the opportunity to privately invest in Indian companies through a group of investment managers on a local and international level.
Al Fulaij added India currently has thousands of competitive companies that show exceptional growth. Owners of such companies in India are just beginning to value the importance of private equity investments in order to increase their competitive levels, he said.
Furthermore, private equity investors can help in improving the management and financial situation of companies as well as develop the operational procedures and provide strategic guidance, he added.
Al Fulaij said the fund was set up to achieve long-term capital appreciation by making indirect private equity investments in companies in India and in other countries in Asia.
The fund aims to achieve its objectives by building a balanced investment portfolio with attractive returns, that will be spread across various investment funds covering different sectors, as well as different years.