Return to search

Report: ADIH to launch distressed fund

The Abu Dhabi Investment House is reportedly planning to launch a private equity fund to acquire distressed assets.

The Abu Dhabi Investment House (ADIH) is planning to launch a fund focused on distressed assets, an official told the Khaleej Times. The fund will acquire assets  likely to have a positive performance following the stabilisation of the global economy, the paper noted.

“The investment house will continue to expand geographically to chase business opportunities and would diversify its investment portfolio by including two new business sectors of clean energy and pharmaceuticals,” Jowa’an Awaidha Al Khaili, chairman of ADIH, said.

ADIH reported net profits of Dh260 million ($71 million; €52 million) for 2008, up from Dh220 million in 2007.

In view of the current market conditions, the profit generated was exceptional, said Al Khaili. He added that in the past year, the firm focused on investments in new sectors and in markets such as North Africa, Asia and Europe.

The firm made its last exit from the Arabi Private Equity Fund in 2008, generating an internal rate of return of 20.2 percent, ADIH managing director Rashad Janahi said.

In 2008, ADIH, Bahrain’s Ithmaar Bank and Gulf Finance House reportedly partnered to create three Middle East-focused funds focused on infrastructure, agriculture and hospitality targeting total commitments of $2.8 billion.

The investment house did not respond to a request for comment.