Ijara Capital Partners granted licence to operate private equity fund

The licence has been granted under the newly-promulgated Private Fund Regulations 2015

Agencies October 29, 2016

After Lakson Investments, Ijara Capital Partners has become the second non-banking finance company (NBFC) to be granted a licence by the Securities and Exchange Commission of Pakistan (SECP) to undertake private equity and venture capital fund management services.

The licence has been granted under the newly-promulgated Private Fund Regulations 2015 and will facilitate the raising of funds from high net-worth investors through different types of funds such as private equity funds, infrastructure funds, hedge funds, debt funds, etc.

Pakistan’s hostile environment for private-public partnership

Ijara Capital Partners was issued the licence on October 24, which is valid for a period of three years; the company will have to launch a private fund in a period of six months.

It will have to follow the Companies Ordinance 1984, the rules, the Private Funds Regulations 2015 (as amended or replaced) and any other directives, circulars, codes, notifications or guidelines issued by the SECP.

The company is going to launch the fund, worth $100 million, in December, for investment in various sectors including healthcare, education, infrastructure, energy, fashion and lifestyle, said Ijara Group CEO Farrukh Ansari, while talking to a news agency.

He explained that the private equity and venture capital fund is important particularly after the ‘Hawala’ business has become impossible and high net worth individuals are seeking options to diversify their investment.

SECP grants first licence for private equity fund

The company’s private equity and venture capital fund will provide access to capital to small and medium enterprises (SMEs) besides big companies for expansion and diversification, Ansari added.

He said that the fund will be raised by approaching high net worth individuals, local and foreign institutional investors by holding road shows in domestic and foreign markets.


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