Rasmala, a regional investment banking firm, has raised $120 million (Dh441m) for Rasmala Mena Private Equity Fund 2 to invest in the Gulf states and aims to increase the size by $230m.
The Shariah-compliant fund is focused on mid-cap opportunities in the GCC and Egypt that benefit from the region's GDP growth. It has a target Internal Rate of Return (IRR) of 25 per cent per annum.
"With this successful first closing we are confident of reaching the target fund size of the $350m in the next few months," said Tamer Bazzari, Deputy CEO at Rasmala.
"We see an abundance of opportunities in the region and believe this is an opportune time to be investing, given liquidity needs in the market and attractive valuations. The fund has already made one investment in the UAE manufacturing sector and is evaluating several attractive opportunities in the banking, oil and gas, logistics, healthcare and education sectors," said Bazzari.
Rasmala Private Equity Fund 2 capitalises on Rasmala's experienced management team, its "on the ground" presence in the GCC markets and Egypt, its strong deal-sourcing and execution abilities, and its proven track record.
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