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Bahrain sees value in third party fund managers

The chief executive of Mumtalakat, the investment arm of the Kingdom of Bahrain, has outlined the fund’s strategy of expanding its investment horizons to areas including real estate. Investments will be made with third party fund managers and be done directly.

Bahrain’s $10 billion sovereign wealth fund plans to diversify its investment programme from private equity into other asset classes, including real estate, according to a report by Arabian Business.

In an interview with Talal Al Zain, chief executive of Mumtalakat, the investment arm of the Kingdom of Bahrain, told the Arabian news service, that the fund planned to invest with third party fund managers. He also indicated that the fund would invest in real estate on a direct basis as well.

In the interview Al Zain said: “We are looking to invest across asset classes, so we are going to be allocating funds to third party managers.” While the majority of Mumtalakat’s investements have been on a local basis, Al Zain said that future international investments were planned.

Current high profile investments by the fund include a 30 percent stake in Formula One’s McLaren Group, the second biggest shareholding in the group.

As at the end of 2007, when it last published its holdings, the fund also owned 100 percent of Cairo-based Egyptian property company Al Awali Real Estate and the Bahrain Real Estate Company