Abu Dhabi Investment House (ADIH) announced on Saturday the second partial exit of Al-Arabi Investment Fund, generating an annual internal rate of return (IRR) of 22 percent, compared to a projected 20 percent promised to the fund's subscribers when the fund was launched in 2005. The announcement came after four months of announcing the first partial exit of Al-Arabi Fund earlier this year. The fund is a diverse range of GCC private equity positions, including underlying investments in a variety of economic sectors. The steady stream of deal opportunities ADIH has access to, has allowed the fund to select from a wide range of investment alternatives enabling it to achieve a balanced portfolio with optimized returns and diversified risks. ADIH, the fund manager, set a target IRR of 20 percent per annum over the fund's five-year life. The second partial exit was a result of exiting three key investments in: banking, real estate and industrial sectors. The successful realization of these investments was translated into an IRR of 22 percent per annum; a gross distribution of $2.96 per share which includes a profit distribution of $1.09 per share and partial capital repayment of $1.87 per share. Toward end of 2007, ADIH announced the exit from the Lagoon Fund, whose ROI of 30 percent - compared to an expected ROI of 27.5 percent -brought actual return to investors to over 2.5 percent more than what was expected. Rashad Janahi, board member and managing director - ADIH, said “as one of our key focus areas, private equity investment is especially interesting because of the unique opportunities that this presents.” “The better than expected performance of Al-Arabi Private Equity Fund is testament to ADIH's proven ability to not only select the right investments, but more importantly, to devise prudent exit strategies,” he added. ADIH was established in 2005 with key business areas including private equity, corporate finance, real estate and asset management. Its current portfolio consists of funds and investments across the Gulf, including Bahrain, Saudi Arabia, Kuwait, Qatar, as well as, North Africa. ADIH's real estate portfolio, which has been its most active line of business over the past year, includes large scale commercial, residential and retail property developments, the most notable of which are The Lagoon - Amwaj Islands, Sunset Hills - Al- Areen and Porta Reef - Reef Island in Bahrain. ADIH has also issued its Qatar Entertainment City fund in 2007 with an ROI of 60 percent, and recently issued the India Entertainment City fund with a projected ROI of 75 percent. __
