Preqin’s Funds in Market product currently holds information on 24 Sharia complaint funds that are in market. Collectively, these funds are targeting a little over USD 10 billion in aggregate capital and thus far a collective USD 2.5 billion has been raised by 11 of these funds which have held at least one interim close.
Almost 60% of the Sharia compliant funds have a primary focus within the Middle East, either exclusively or as part of a wider geographical focus. A further 13% mainly target opportunities throughout Asia, with only 12% focusing either in Europe or North America. The remaining 17% of funds have either a global or other primary regional focus.
The most abundant Sharia compliant fund types currently in market are real estate and growth funds, which both have six vehicles each currently seeking capital commitments. These are followed by three buyout, infrastructure and venture capital funds, with the remaining three funds including a mezzanine fund, natural resources fund and a PIPE fund.
The largest Sharia compliant fund in market is the Abraaj Buyout Fund IV, a USD 2 billion buyout fund that targets opportunities across the Middle East, North Africa and South Asia. The fund has a diversified industry focus and has enlisted the services of MVision Private Equity Advisors to aid with capital raising. The largest growth fund is the Rasmala MENA Private Equity Fund 2, a USD 350 million targeting mid-cap growth opportunities across the MENA region, with a particular focus on the GCC countries.