Bahrain bank sets up $100 million equity fund
Manama, February 17, 2011
Bahrain-based Oasis Capital Bank (OCB) said its private equity division has established its first diversified investment vehicle, OCB Global Investment Opportunities, a $100 million target fund seeded and managed in partnership with Credit Suisse.
The Bahraini private investment bank aims to invest in mid market private equity transactions alongside leading managers in Europe, the US and Asia.
Earlier in the year, the group completed a partnership with Zouk Ventures, a leading clean technology investor with a view to exploit a number of growing opportunities in renewable energy, energy efficiency and waste and water technologies in Europe and the Mena region.
'We have been investing in a number of income-generating projects with an aim to exit within about four years,' said Dr Al Mulla.
'We look at about 80 possible projects a year and chose about four but before we go ahead with anything we always bring in outside consultants to see if they agree with our thinking and if they question it we walk away.
'This is about risk and controlling risk. I regard the exit strategy as the key to investment,' he added.
'Once you have added value to a project then it is time to exit and find another home for capital rather than have it tied up for a long time.
'The business is about adding value and then taking capital and investing it to add value elsewhere, not hanging on forever,' Dr Al Mulla said.
'The board is encouraged by the results in this challenging environment and by the prospects of deal flows coming to the bank,' said OCB chairman Shaikh Mohamed bin Isa Al Khalifa.
'The accent is to be patient, but also to continue to make progress in building the franchise into a successful venture.'-TradeArabia News Service