Private equity investment helps in nurturing young companies

Private equity investment helps in nurturing young companies throughout various stages of growth as per the diagram below:

* Investments in financial services, tobacco, breweries and cinemas are examples of non acceptable industries to investment in according to Shari’a ethical guidelines.

- Islamic financial institutions worldwide has risen from 1 in 1975 to over 300 in more than 75 countries. - Total assets and financial investments of the world’s Islamic banks are estimated to stand at US$ 262 billion and over US$ 400 billion respectively. They are estimated to grow at a rate of 15% annually over the coming years. - The Islamic equity funds worldwide total assets is currently estimated over US$ 5 billion and is growing at rate of 12 -15% annually.

PE Firm Limited Partner $$ Screening Due Diligence Post Acquisition Mgmt Exit Partnership (the Fund) Investments - closed-end fund with a finite life

Islamic investors should apply the model of private equity firms whose strategy evolves around taking majority stakes in privately held companies engaged in the real economy. This will enable them to maintain control, which ensures the company’s adherence to Shari’a principles.

Governed by Shari’a principles, the parameters set for Islamic Private Equity investors will cause: