Tuareg Capital (the "Investment Manager" or "IM") has raised Libya's first ever private equity fund.
The Fund
The Libya Fund is a US$100 million closed-ended investment company incorporated in the Cayman Islands through which investors may participate in private equity investment opportunities in Libya.
Successful 1st Closing in February 2007
The Fund announced a successful first closing in February 2007. Subsequent closings will take place in the future as Tuareg Capital capitalises on the Libya opportunity and obtains increased levels of commitment pursuant to deal flow.
The Opportunity
Libya, with a strategic location in the Southern Mediterranean, is the wealthiest country in North Africa, one of the world’s most significant oil producers and potentially, an important tourism destination. With the lifting of sanctions in 2004 and as demonstrated by the recent flow of positive news, Libya is re-integrating with the world. Following a difficult few decades, Libya is now utilizing revenues from its substantial energy resources to undertake a huge infrastructure upgrade programme. As importantly, Libya is also implementing significant economic liberalization and reform policies and is seeking to diversify its sources of income through developing the private sector and encouraging foreign direct investment (“FDI”).
Investment Strategy
The primary objective of the Fund is to achieve capital appreciation through selected direct equity and equity-related investments in Libyan ventures. The Fund will operate in accordance with Sharia’a principles. The IM 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:
(i) international funding
(ii) foreign expertise
(iii) 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. As such, no more than 20% of the Fund’s total Capital Commitments will be invested in a particular investment and no more than 30% will be invested in any particular industry.
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:
info@tuaregcapital.com
The Fund
The Libya Fund is a US$100 million closed-ended investment company incorporated in the Cayman Islands through which investors may participate in private equity investment opportunities in Libya.
Successful 1st Closing in February 2007
The Fund announced a successful first closing in February 2007. Subsequent closings will take place in the future as Tuareg Capital capitalises on the Libya opportunity and obtains increased levels of commitment pursuant to deal flow.
The Opportunity
Libya, with a strategic location in the Southern Mediterranean, is the wealthiest country in North Africa, one of the world’s most significant oil producers and potentially, an important tourism destination. With the lifting of sanctions in 2004 and as demonstrated by the recent flow of positive news, Libya is re-integrating with the world. Following a difficult few decades, Libya is now utilizing revenues from its substantial energy resources to undertake a huge infrastructure upgrade programme. As importantly, Libya is also implementing significant economic liberalization and reform policies and is seeking to diversify its sources of income through developing the private sector and encouraging foreign direct investment (“FDI”).
Investment Strategy
The primary objective of the Fund is to achieve capital appreciation through selected direct equity and equity-related investments in Libyan ventures. The Fund will operate in accordance with Sharia’a principles. The IM 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:
(i) international funding
(ii) foreign expertise
(iii) 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. As such, no more than 20% of the Fund’s total Capital Commitments will be invested in a particular investment and no more than 30% will be invested in any particular industry.
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:
info@tuaregcapital.com