Funds
The Fund
The Libya Fund allows investors to participate in private equity investment opportunities in Libya in a number of sectors.
The Opportunity
Libya, with a strategic location in the Southern Mediterranean, has the world’s 8th largest oil reserves. Following the February 17th popular revolution, Libya is set to start a new chapter in its history. After four decades of oppression and dictatorship, the Libyan people have regained their dignity and pride and are ready to re-build a great country. An immense amount of work needs to be done and, from an investment perspective, we feel that the opportunities are boundless and those with the right mix of skill, experience, capital, relationships and tenacity, will build great companies and make strong investments. Libya’s extensive energy resources will help fund its reconstruction and re-build efforts but Libya will undertake much more wideranging efforts including economic diversification and building new state institutions. On the back of this and continued economic and legal liberalization, we believe that foreign direct investment (“FDI”) will be attracted to Libya.
Investment Strategy
The primary objective of the Fund is to achieve capital appreciation through direct investments in Libyan ventures. The Fund will operate in accordance with Sharia’a principles. Tuareg Capital believes that a wealth of opportunities to make attractive investments exist on account of a number of factors, including, the economic liberalisation measures being implemented, the strong growth of the Libyan economy, the current lack of diversified sources of funding, and the greater attention given by the Libyan authorities to developing a comprehensive private sector and in introducing foreign capital and expertise.
The Fund’s strategy is to harness three key elements of:
- international funding
- foreign expertise
- local knowledge & contacts
to grow and create model corporations that will provide long-term value for shareholders and other stakeholders alike. The IM will seek to build a diversified portfolio of investments for the Fund, ensuring a balance of industries, sizes and types of investment.
Types of Investment
Early Stage Businesses
The IM anticipates that a reasonable number of selected early stage businesses will represent attractive investments for the Fund. The IM will generally identify a reputable, experienced technical partner with a strong track record to provide the necessary expertise and operational skills and will only consider investments with robust, realistic and achievable business plans and especially cash flow profiles, a strong, experienced management team, and the ability to add value.
Growth Capital for Existing Businesses
A dearth of financing alternatives in Libya has led to a distinct lack of funding for otherwise solid companies to profitably grow their businesses. Additionally, such companies may seek the international financial and advisory expertise of a financial investor.
Strategic / Consolidation Opportunities
There is likely to be an increasing need for private equity to support the restructuring and reorganisation of companies preparing for a stock market listing, or other exit in the future. Additionally, consolidation of fragmented industries may provide attractive investment opportunities.
Privatization Programme
The IM anticipates investing in selected opportunities that may arise from the current privatization process of state sector companies. The Fund maintains the scope to participate as a principal, co- or strategic investor alongside reputable partners of international standing.
Real Estate Developments
Given the planned large-scale infrastructure upgrade programme and the drive towards diversifying the economy, the IM sees strong opportunities within this sector and will seek to develop or co-develop small to medium sized projects with selected technical partners.
To receive further information about the fund, please contact us:
