Private Equity / Venture Capital

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#Zurich: #Responsible #Finance & Investment Summit 3-4 May 2017

Summit will explore intersection of #fintech, #ESG and #Islamicfinance. #RFISummit17

January 24, 2017, Zurich, Switzerland –

Bringing together a diversity of perspectives is critical for continuing the growth occurring within responsible finance. On this premise, the Responsible Finance & Investment Summit 2017 will convene in Zurich, Switzerland from 3-4 May 2017 around the theme “Building Bridges, Expanding Impact”.

Recent estimates from industry stakeholders show continued growth in responsible finance assets in many geographies and sectors. Responsible investment in Europe grew by 42% during the past 2 years, while in the U.S., assets grew by 33%. In Islamic finance, which has a global presence with a significant presence in Europe, the Middle East and Asia, growth in the last 2 years has been 21%. Identifying actionable areas for collaboration will support continued growth towards a more sustainable financial system.

#Bahraini #bank eyes further #investment in #Turkey

Bahrain-based Venture Capital Bank seeks investment in the health, education and food sectors in Turkey, according to the bank's chief executive officer. "We trust the growth potential of the Turkish economy. We want to make new investments in health, education and food sectors in Turkey in 2017," Mohammed Janahi explained this week. Further he said Turkey had always been on the agenda of the bank since the day it was established. Janahi also explained the bank's first move was to buy the majority of the shares of a Turkish company in 2012 that produces concentrated fruit, which he said amounted to around $300 million.
"The company's profits have tripled since that day. We intend to expand our capacity with additional acquisitions," he said. According to Janahi, they focused on the food, education and health sectors as they are least affected sectors by everyday events in the country. "From the beginning, we need to explain that our main goal is to establish a strategic partnership and enlarge the business," he added.

MASIC partners on #Islamic #financing of $219 million New York Condo

Baker & McKenzie advised Mohammed I. Alsubeaei & Sons Investment Company a leading private equity investment company based in Saudi Arabia in a $219 mn dollar Murabaha facility to develop a luxury condominium development. MASIC provided the mezzanine financing for the development project, 45 Park Place, located in New York's TriBeCa neighborhood. The deal highlights the expansion of Islamic financing into the US real estate market.
MASIC partnered with other financial institutions and Soho Properties on the downtown condo project, which is scheduled for completion in 2018. Financiers for the project include Malayan Banking Berhad, London Branch; Intesa Sanpaolo S.p.A.; Warba Bank K.S.C.P.; and MASIC.
Baker & McKenzie partner Mona Dajani said, “This successful financing by MASIC is a milestone transaction in the United States using tiered Shari’ah-compliant facilities for commercial transactions. This transaction aptly demonstrates the increased activity in Islamic financings in the United States which has emerged over the past year.”
The Baker & McKenzie team, led by Ms. Dajani, included partner, Pat McDonald and associates Michael Reed, and Maher Haddad.

KAUST and ICD collaborate on venture capital fund for KSA

The King Abdullah University of Science and Technology (KAUST) and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), in collaboration with Anfaal Capital agreed to establish a Saudi Arabia-focused venture capital fund.
The joint initiative aims to promote and foster the development of the domestic venture capital market in Saudi Arabia. The initiative leverages KAUST’s expertise in new technologies, as well as the ICD SME Program’s experience in the development and management of investment vehicles.
The Fund will provide venture capital (VC) funding for high-tech start-ups located in Saudi Arabia and lead early-stage financing rounds attracting local investors and international venture capitalists. Furthermore, it will invest in sectors that are strategic for the region and nurture entrepreneurship and technological innovation, stimulating the creation of high-value jobs.
The Fund will search for unique and innovative venture capital opportunities and provide the “smart and hands-on capital” needed to start and then sustain these companies.

King Abdullah University of Science and Technology and the Islamic Corporation for the Development of the Private Sector support the venture capital industry in the Kingdom of Saudi Arabia

The King Abdullah University of Science and Technology (KAUST) and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), in collaboration with Anfaal Capital agreed to establish a Saudi Arabia-focused venture capital fund.
The joint initiative aims to promote and foster the development of the domestic venture capital market in Saudi Arabia. The initiative leverages KAUST's expertise in new technologies, as well as the ICD SME Program's experience in the development and management of investment vehicles.

Indonesian philantropists are changing lives

Channel NewsAsia is shining a deserved spotlight on individuals and organizations dedicated to charitable giving with a new program aptly called "Changing Lives," which celebrated its launch on Tuesday with the support of several billionaire philanthropists from Indonesia.
"The idea for the program came from my conversation with pak Tahir," said Debra Soon, head of news and premier segments at MediaCorp, the parent company of Singapore-based Channel NewsAsia.
Soon was referring to renowned Indonesian businessman and founder of the Mayapada Group, Tahir, who was present at the launch in Fairmont Jakarta.
"We talked about what we can do to promote philanthropy. I said, 'Why don't we organize events [and] have a program, because as a channel, we should be raising awareness of issues that matter to Asia.'"
The event included a gala dinner and talk show which featured Tahir as well as Maritime Affairs and Fisheries Minister Susi Pudjiastuti, who is known as a prominent business owner in her own right.

UAE and Saudi lead private equity & venture capital investments by value in MENA region

The MENA Private Equity Association has launched its ninth “MENA Private Equity & Venture Capital” Annual Report. According to the Report, 2014 was a significant year for the industry and has demonstrated the highest levels since 2008 in investment values and fund raisings. 2014 has also seen growth in investment and divestment volumes compared to 2013. The year was characterised by some of the largest private equity deals seen in the region. Fund managers had demonstrable success in assembling and working with consortium partners, including international private equity investors, to close major transactions. Overall, there was a sense of returning confidence and increased opportunities as the region continued to emerge from the impact of the Arab Spring.

Middle East private equity industry seen gaining maturity

The Middle East private equity industry, which went through a period of shake out post-financial crisis is back on its feet and the market has matured in the last five years in terms of deal structures, volumes and values, according to industry practitioners. Family-owned businesses, in particular, are looking for ways to grow and expand regionally or internationally and they too are becoming more sophisticated in how they structure and govern their businesses in order to attract private equity investors, said Alexander Gross, Director at Merrill DataSite. Overall, the panellists agreed that there is more maturity on the sellers’ side and they recognise the value of private equity, more than they did five years ago.

Waqf Fund holds its 8th Roundtable Discussion on Venture Capital

The Waqf Fund held its 8th Roundtable Discussion on "Venture Capital - Building the Next Phase of Economic Development in Bahrain". The half-day session was attended by a group of 39 senior professionals. Some of the key takeaways from the Roundtable are as follows: Venture capital is an important industry. An ecosystem is needed to create a vibrant venture capital industry. There is a strong case for the government to kick start the venture capital industry. A change of mindset is required among capital owners of the region. The conclusions reached and recommendations provided by the Roundtable Discussion will be compiled by the Waqf Fund for further consideration of the relevant authorities.

Saudi Arabia expected to retain popularity in private equity investment

Saudi Arabia will remain a favoured destination for private equity investment in the coming years in spite of volatile oil prices and instability in neighbouring Yemen, investment professionals said. Lower oil prices in the past year are unlikely to affect the growth in consumer-facing sectors such as health care and retail, making companies operating in such sectors attractive targets, according to Huda Al Lawati, a partner with Abraaj Capital in Dubai. But sustained lower oil prices may have an impact on deals in infrastructure and construction sectors, according to Sameer Nawaz, the managing director and co-head of investment banking at Saudi Fransi Capital in Riyadh.

Private equity braves middle east instability

It seems to be getting harder and harder to find a news story about the Middle East and North Africa (MENA) that doesn’t fall within the narrow narrative of disorder and political violence. From state collapse in Libya and the tragic conflict in Syria to the geopolitical flashpoint in Yemen, the headlines from the broader region make for bleak reading indeed. These challenges are real and they are significant, but there is another story about the region that remains under-reported. It is a story of dynamism and entrepreneurship, and it’s one of how private capital is playing a critical role in creating new realities for the region and its people.

MENA venture capital industry to grow 5-fold in next 3 years

The Venture Capital industry in the Middle East and North Africa region is set to grow five-fold in the next three years, according to Dany Farha, CEO of BECO Capital, a regional Venture Capital firm focused on technology investments in the MENA region. Farha said this boom will be propelled by the UAE and Saudi Arabia. Tech VC activity in the region is still on the rise across all functions, from fund raising and deal flow, to closing transactions. Almost 60 percent of the companies that BECO saw were revenue-generating and more 20 percent were close to break-even. BECO Capital is targeting investments in the whole of the GCC region, with a special focus on start-ups in Kuwait, Saudi Arabia and the UAE, Egypt, Jordan and Lebanon.

Big Investors Rebelling Against Private Equity Fees

In a remarkable and long-overdue change in attitude, institutional investors are starting to tell private equity titans that they think they don’t earn their outsized pay. As Oxford professor Ludovic Phalippou explained in a 2011 paper, the prototypical 2% management fee, 20% profit share structure is deceptive. Remember that that 2% fee starts ticking as soon as the investor makes his commitment to the fund. But no money has passed hands. The private equity fund isn’t managing any money at that time, just on the hunt for deals. It typically takes several years for all the funds to be invested. Phalippou estimates that the effective management fee level, as a percent of funds at work, is a mind-boggling 4%.

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Relaunch IslamicFinance.de Newsletter - Free Download

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Geneva Workshop: The interface between private and institutional donors - How to leverage impact

This Seminar on Wednesday, 18 June, is within a series of International seminars, workshops and dialogues the Academy of Philanthropy is organising around the world. This particular Seminar is held in Geneva for the benefit of private philanthropists, financiers, UN system, NGOs, as well as regular visitors to the region from the Muslim world.

The Seminar is intended as an attempt to bridge the gap between venture and institutional philanthropists on one hand and recipient countries and NGOs on the other, with the aim to discuss and learn how to leverage impact and sustainable development. The Seminar is forward-looking in light of global events, such as the post-2015 development agenda and the shifting landscape of development and philanthropy.

Session outcomes

1. Raise awareness on the roles of stakeholders in philanthropy and sustainable development at global, regional and country levels, namely: private sector, institutional donors/development agencies, venture philanthropy, and civil society.

Worldwide study shows religious investors can ally faith and finance

Religious investors, in economic terms the third largest group to invest on the world’s stock markets, can post high placement profits and remain faithful to their religious creed. This is the message of the third biennial world report on religious investors, the only report of its kind.

The report highlights the profile of religious investors who respect this balance and thus can have a major influence on company ethics:
- Their principles of faith can serve as a road map for investment choices;
- By nature, these investors have a long-term view which is key to the notion of responsible investment;
- They can call on the support of what is often a worldwide community;
- They have set up networks that offer the chance to work together on stakeholder actions and therefore increase their impact.

Even though a certain number of religious organisations invest responsibly and use their role as shareholder-activists to promote change this sort of profile is far from the majority.

Bi-annual Bulletin on the Malaysian Islamic Capital Market by the Securities Commission Malaysia

Contents
Revised Shariah Screening Methodology: 1
Expands ICM’s Global Reach
SHARIAH
New Shariah Advisory Council Resolutions 3
DEVELOPMENT
Region’s First Structured Covered Sukuk 7
Royal Award for Islamic Finance Calls for Global 9
Nominations
SC and Autoriti Monetari Brunei to Strengthen 9
Efforts in Greater Cross-border Activities
SC Leads Islamic Finance Taskforce to Publish a 10
Report on Enhancing Infrastructure for ICM
REGULATORY
IFSB-IOSCO-SC Collaborate on Disclosure 11
Requirements for ICM Products
SC Revises Equity Guidelines for SPACS 12
Technical Note on the Application of SC’s 13
Guidelines In Relation to Non-Tradable and
Non-Transferable PDS and Sukuk
FEATURES
2013: Another Resilient Year for the Global 14
Islamic Finance Industry
Global Islamic Funds Industry: Achieving 18
Growth Under Challenging Times
Harmonisation of Shariah Rulings 22
in Islamic Finance
News Round-up 29
STATISTICAL UPDATES
Malaysian ICM – Facts and Figures 32
Free download below at source:

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How to achieve a soft landing of a deleveraging, while growing economy?

For many years we see in the media experts believing in inflation and even hyper inflation. However, in the same time we face proponents warning against deflation. So far we all noticed.

Only a about a week ago I read an article by Myret Zaki clarifying that unfortunately inflation and deflation co-exists.

Myret Zaki's thesis is that we face inflation on financial markets, and deflation in the real economy (in French):

http://www.bilan.ch/myret-zaki/redaction-bilan/inflation-et-deflation-co...

In my view there is a general major shift in the price matrix and I still try to figure the magnitude and implications thereof. It is a bit irritating as at University we learned about neutrality of money:

http://en.wikipedia.org/wiki/Neutrality_of_money

This means any extra supply will increase prices equally, 5 % more money, all prices going up 5 %. Pretty plausible at first hand. However, it seems it does not work in reality any more (or never did).

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