The Securities and Exchange Commission of Pakistan (SECP) has given go-ahead to the country’s first private equity and venture capital fund worth $100m under Private Funds Regulations 2015, media sources have reported.
Ijara Capital Partners Ltd, a private equity firm licensed by the SECP in October 2016, will be undertaking the private equity and venture capital fund management.
As per the approval document issued by the SECP on April 20, Emerging Market Fund-1 is categorised as a private equity and venture capital fund.
Talking to media sources, Ijara Group CEO Farrukh Ansari said that private equity funds offer people alternative choices to investment for long term. This helps stimulate economic growth by attracting capital from local and overseas investors. In addition, the initiative will help companies and entrepreneurs unable to generate sufficient capital from banking channels or capital market.
An increase in capital helps businesses to expand, generates employment opportunities and leads to capacity building leading to foreign exchange earnings through increased exports, he added.
Ansari further stated that the fund is suited to give accredited local and foreign investors easier access to private equity investment opportunities.
He informed that the fund will offer a portfolio of private equity investments in healthcare, infrastructure, real estate, information technology and other high growth sectors.
Ansari went on to add that the fund will have a finite life. It will later exit through a secondary market sale or initial public offer (IPO), allowing high returns to investors.