According to the document issued by the Securities and Exchange Commission of Pakistan (SECP), the commission has approved the first private equity and venture capital fund worth 100 million dollars under the Private Funds Regulations 2015. The fund got approved on April 20, 2017.
Ijara Capital Partners Ltd. is a private equity firm that has been licensed by the SECP in October 2016. The establishment has been authorized to take on the private equity and venture capital fund management registered in the name of Pakistan Emerging Market Fund -1.
The license will allow Ijara Capital Partners Ltd. to launch private equity (PE) and venture capital funds (VC) as well as alternative funds. The approved license is the first and major step in regulating the private pools of investment by the SECP. The fund is raised locally for deployment of various types of investments.
It will aid the company to rear funds from high net worth investors over several varieties of funds like private equity funds, infrastructure funds, hedge funds, debt funds etc. These funds will be regulated under the Private Funds Regulations of 2015 which encloses some comprehensive features. These features include ample investment strategies, disclosure of periodic information to investors and audit of fund along with many other apposite features.
Talking to the media, Ijara Capital Partners Ltd. CEO, Mr. Ansari, shared that the fund will help companies with limited access to capital from banking or capital market channels. According to him, the fund is designed to provide the local and foreign investors a much easier access to the private equity investment possibilities. Moreover, the fund offers perks like equity investments in health care, infrastructure and information technology.
The fund will eventually take its exit from the secondary market sale or initial public offer which will reap high returns to the investors. This will help in the monitoring process of unregulated funds along with the additional benefit of encouraging new capital.