New PE fund expects to raise more than 50% from Middle East

Reflecting a strong confidence in Mena investors, Pharos Financial Group is expecting more than 50 per cent of the money for its $350 million (Dh1.28bn) agricultural fund to come from this region.

"We are expecting a seed partner by the end of the year of around $20m, the entire fund has a size of $350 million," John J Papesh of Pharos Financial Group, told Emirates Business.

The new fund, called Pharos Miro Agricultural Fund, launched on Sunday, is "a private equity investment opportunity in a new strategic asset of the 21st century, that is agriculture", he said.

The fund has a target annualised return of 20-25 per cent with a minimum yield in the target range of about 18 per cent. Papesh said the expectation of generating heavy share from this region was due to the huge"appetite for the new strategic asset. Investors are seeking opportunities – they realise that there are limited resources of land and also food given the rise in global population".

Investor activity has picked up globally and also in this region, he added. "We are seeing activity by investors picking up and more appetite. We are estimating the worst of the crisis is over and we are back to recovery."

The Middle East has different appetite for private equity funds, he said, adding "we expect more than 50 per cent to come from this region. The region is an important part of our fund raising efforts".

 

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