ADIH fund returns beat target
Manama, July 7, 2008
Abu Dhabi Investment House (ADIH) has announced the final exit of Al Arabi Investment Fund, generating an annual internal rate of return (IRR) of 20.2 per cent.
The fund's subscribers were promised 20pc annual return when it was launched in 2005.
This announcement comes 30 months earlier than the expected date of exit.
Two partial exits for Al Arabi Investment Fund were already announced during the year, first partial exit achieved an IRR of 25pc and the second partial exit achieved an IRR of 22pc.
The fund is a diverse range of GCC private equity positions, including underlying investments in a variety of economic sectors.
The steady stream of deal opportunities ADIH has access to, has allowed the fund to select from a wide range of investment alternatives enabling it to achieve a balanced portfolio with optimised returns and diversified risks.
The successful realisation of these investments was translated into an IRR of 20.2pc per annum a gross distribution of $8.63 per share, which includes a profit distribution of $3.1 per share and partial capital repayment of $5.53per share.
"As one of our key focus areas, private equity investment is especially interesting because of the unique opportunities that this presents," said ADIH board member and managing director Rashad Janahi.