MENA Infrastructure, a private equity firm owned by HSBC, Dubai-based Fajr Capital and Abu Dhabi's Waha Capital, aims to raise $500 million for its second fund, according to a recent report from Reuters.
Fajr Capital has the governments of Malaysia, Abu Dhabi and Brunei as shareholders. Waha Capital is an Abu Dhabi-based investment company that invests in sectors that offer high growth potential.
Jeronimo Roura, CEO of MENA Infarstucture, is quoted in the article several times adding information about the fund. He said that the fund will be a continuation in the strategy of the first fund, with the inclusion of Turkey, and a larger fund size to execute larger deals.
The $500 million sharia-compliant fund, MENA Infrastructure Fund II, will primarily invest in energy and infrastructure firms in the Middle East and Turkey. The fund is currently analyzing four potential deals in Turkey, in which it will invest up to 20 percent of its total size.
The fund plans to execute up to ten deals worth between $50 million and $100 million each.
Roura said in the article that Malaysia's sovereign fund Khazanah Nasional may invest directly in MENA Infrastructure II or work towards a joint investment with the fund.
Plans are that the new fund will start fundraising in Europe, the Middle East and southeast Asia this month. A first close is expected for March 2015 and only then the first deal will be executed.
The $300 million MENA Infrastructure Fund I bought stakes in firms across Egypt, Oman and Saudi Arabia, said the report.