1 / 26

Faiz I Private Equity Fund

Faiz I Private Equity Fund. April 2008. Fund Terms. Fund Managers. Kuwait Finance House – Malaysia

aracely-trey
Download Presentation

Faiz I Private Equity Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Faiz I Private Equity Fund April 2008

  2. Fund Terms

  3. Fund Managers Kuwait Finance House – Malaysia • KFH established a regional office for Asia Pacific operations in Malaysia, Singapore, Australia in 2005 and since then developed a strong local networks. Plans in place to develop PE offices in China and India. • KFH M is the first international bank to be granted foreign Islamic bank and dealer licence by the government of Malaysia. • Main Activities • – Islamic banking - Investment banking • - Fund management - Facilitator to promote 2-way investment between Middle East and Asia Pacific Region • Attracted over 450 professionals from local and international financial institutions with solid local experience and business network in the Asia Pacific Region

  4. Fund Managers • Al Aman Investment Company • Al Aman Investment Company (“Al Aman”) is one of the leading Shari’a compliant financial institutions in Kuwait that offers a variety of financial services with a focus on Asset Management and Investment Advisory. • Al Aman was built on the heritage and expertise of Securities House Company with a modern vision towards the future. • The Company is listed in the Kuwait Stock Exchange with a capital of KD 49 million (USD 183 m.) and over USD $2.8 billion of assets under management. • Al Aman is the Placement Agent and Co-Manager of the Fund which actively monitors the fund performance and provides local and GCC investors with unique roles and opportunities.

  5. Economic Outlook • The Emerging Markets Economies contribute over half of the world’s output. • EME countries industrialised and improve their infrastructure and rapidly developing their services sector. • We forecast Asia’s 2008 GDP growth to be 8% y-o-y, higher than developed countries’ growth of 2.5% y-o-y, driven by sustained private consumption, higher public infrastructure spending and positive intra-Asian export growth.

  6. Massive international reserves Sustained Economic Growth Resilient export growth and increased intra-regional trade Measures undertaken to boost private consumption Expectations to reduced federal deficits Robust economic growth rates in China and India Economic Outlook Overall

  7. Achieve significant returns on investors’ capital through Shariah compliant direct investments made in private companies in the emerging Asia-Pacific region. Special emphasis will be placed on enterprise value creation and development of multiple exit channels, while minimising financial risk. The target internal rate of return objective is to exceed 25% (gross before all fees and excluding Placement Fee and taxes) during the anticipated Charter Life. Investment Objective

  8. Fund Positioning

  9. Investment Strategy

  10. Investment Strategy

  11. Investment Process

  12. Fund Directors Dato’ Khawaja Mohammad Salman Younis Managing Director Kuwait Finance House Malaysia Mohammad Mohareb Al Qahtany Chief Executive Officer Al Aman Investment Company Tony Yong Heng Thong Chief Financial Officer Kuwait Finance House Malaysia

  13. More than 9 years private equity and investment experience and responsible for investments totaling more than USD300mn Notable private equity transaction includes Asia second largest integrated duck meat processor exited for 9.3x costs and IRR of 47% and Malaysia largest out of home media exited for 3.4x cost and IRR of 33% Mr Lew is the director and executive committee member of SI Consolidated Sdn. Bhd., Hospitech Manufacturing Sdn. Bhd., and Hospitech Marketing Sdn. Bhd. and Radlink Asia Pty. Ltd. Mr. Lew holds a Master in Banking and Finance from the University of Sydney as well as a Bachelor of Economics from the Flinders University of South Australia. Management Team Lew Oon Yew Head of Private Equity Kuwait Finance House - Malaysia

  14. More than 8 years private equity and investment experience and responsible for investments totaling more than USD200mn. Notable private equity transactions include the buy out of 90% of one of Australia’s significant coffee chain with regional presence and within 5 years exited at IRR 30% more. The acquisition of one of SEA largest security and investigative services. Within a year post investment, a new business division was set up to take advantage of the market demand for employment screening services which was soon after sold and recovered close to ¾ of the entire cost of investment. Mr. Wu holds a Professional Chartered Accountancy qualification and is also a fellow member of the Association of Chartered Certified Accountants (ACCA) of the United Kingdom. Management Team Wu Chin Loong Deputy Head, Private Equity Kuwait Finance House - Malaysia

  15. More than 8 years private equity, venture capital and investment experience responsible investment totaling more than USD80mn Notable private equity transactions include: Successful listing of first Hong Kong/PRC Mobile Technology Company in London Alternative Market. Acquisition and listing of IC design and technical support company in China and Singapore in Hong Kong. Mr. Lee holds a Bachelor of Commerce (Honours, Dean List) from McMaster University Canada. Mr. Lee also is a CFA Charter Holder. Management Team Joseph Lee Moh Hon Senior Manager, Private Equity Kuwait Finance House - Malaysia

  16. More than 4 years private equity and investment experience with notable executed investments - Kuwait Slaughter House x-Board Member Kuwait Bahrain Exchange x-Board Member Ajwan Real Estate pre IPO Mawasim for Hajj Services Board Member Kuwait Medical City Board Member In addition to several acquisitions of small to medium companies and structuring investment portfolios. Mr. Al Dakhil holds a Bachelors of Science in Industrial Engineering and in the process of obtaining his CFA Charter. Management Team Dakhil A. Al Dakhil Investment Manager Al Aman Investment Company

  17. Mr. Boodai has been involved in the establishment of various private equity portfolios and investments held by Al Aman. He was directly involved in structuring various private equity and real estate portfolios with a value in excess of US$150 million. He was directly involved in the acquisition of several medical clinics. Mr. Boodai holds a Bachelor’s Degree in Finance and Financial Institutions with high honors awarded from Kuwait University. Management Team Abdullah F. Boodai Investment Analyst Al Aman Investment Company

  18. Current Portfolio Companies

  19. Current Portfolio Companies

  20. Company description: Integrated precision engineering, stamping and assembly manufacturer with operations in Singapore, Malaysia and China: One of the top five in SEA Achieve scale, integration and footprint in China Performance: Established platform, footprint in major industrial market and clear business model with impressive growth SGA redundancy exist while China is just turning around. Investment rationale: Major shareholder wanted to exit due to shift in focus Compelling valuation, identifiable growth and operational initiatives to drive profitability Faiz value-added: Operations Asset reorganization, expedite turnaround of China, financial & cash flow control and streamline SGA costs Business development Expansion of into new services, identified & execute M&A/JV opportunities and products for full integration Exit considerations: Public listing or full realisation to strategic buyer Current Portfolio Companies SI - Performance Overview Transaction Details Country: Singapore, Malaysia, China Enterprise value at entry: USD10.1m Entry multiples: (2005) EV/EBITDA 3.2x EV/Sales: 0.4x KFHPE ownership: 68% equity Board seats: 4 of 6 Total equity invested: USD4.4mn Expected 5 year IRR: 35% Expected money multiple: 2.9x Current estimated equity value: USD8.5mn (for 68% equity) (based EV/EBITDA of 4x)

  21. Company description: Market leader in independent diagnostic sector in Singapore. Chain of GP clinics and health screening centers. Performance: Revenue grew strongly within the high field imaging due to increasing demand for quality healthcare services. Complemented by GP clinics which is a stable segment and serve as a feeder. Investment rationale: The rising health awareness and ageing population is driving demand for healthcare services. Market leader in diagnostic with strong potential to become market leader in primary healthcare. Faiz value-added: Operations Assist in financial management and transfer of cardiac know-how from Vivus Business development Assist in identifying strategic acquisitions and organic expansion into high end health screening Exit considerations: Public listing or trade sale to Pacific Healthcare Current Portfolio Companies Radlink - Performance Overview Country: Singapore Enterprise value at entry: USD16.1m Entry multiples: (2005) EV/EBITDA 5.7x EV/Sales: 1.4x KFHPE ownership: 36% JV/ 23% Effective Board seats: 2 of 6 Total equity invested: USD4.1mn Expected 5 year IRR: 25% Expected money multiple: 2.6x Current estimated equity value: USD4.7mn (for 23% equity) Transaction Details

  22. Company description: Integrated disposal medical devices manufacturing and sterilization service provide. One of the pioneer which market under own brand. Performance: Financial distress has affected the operations and sales as it is unable to fund working capital. Immediate revenue and earnings growth with capital injection Investment rationale: Resilient demand and ability to scale revenue growth through capital injection. Ability capture sales to investees and JV partner. Faiz value-added: Operations Provide capital injection and refinancing. Improve cash flow management and corporate governance. Spin off non-productive assets. Business development JV partners has visited plant and will start procuring Increase manufacturing volume and new products Exit considerations: Public listing or trade sale Current Portfolio Companies Hospitech - Performance Overview Country: Malaysia Entry multiples: (2007) EV/EBITDA 6.0x Ownership: 65.1% equity Completion Date December 07 Total equity invested: USD2.9mn Current estimated equity value: USD2.9mn Realisation: N/A Transaction Details

  23. Current Portfolio Companies

  24. Deal Closing Company Geography Industry Enterprise Value at Entry Investment Type Equity Requirement Ownership Value Creation Thesis Exit Status • CNNL Waste Solution • China • Waste Management • US$6.6m (Injection USD25mn) • Expansion/Strategic Assets • US$32mn • 80% of Common Shares • M&A downstream operators • Acquisition of strategic waste management assets in China and regionally • List in China/US or Singapore • Trade sale to major environmental fund or environmental conglomerate • SPA for 80% equity signed. Submission for regulatory approval

  25. Prospective Investments

  26. Key Investment Attractions • Fund is already established with track record and pipeline of deals. • Reputable sponsors (Al-Aman and KFH Kuwait). • Local presence in SEA, China and India and expanding. • Investors relations close to home - Al Aman and KFH Kuwait interacts with investors. • Geographical diversification and exposure to emerging Asia Pacific economies. • Sector diversification to investors and growth industries. • Insulation from the volatility and speculative forces of the stock exchange. • Advised by the Shariah Board of KFH Group and complies strictly to Shariah principles. • High potential investment rate of return exceeding 20% IRR.

More Related