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for growth and expansion in Saudi Arabia. The Fund is managed by Malaz Capital, an asset management firm operating under the regulations of the CMA.
ICD invested SAR 100 million (USD 26.7 million)
in September 2013 and owns 25% of the Fund.
Since inception, a total of SAR 191 million was deployed by the Fund to 12 SMEs in KSA in the
form of commodity Murabaha and equity to finance growth and the expansion of operations. The portfolio
is well-diversified across various sectors including manufacturing, education, healthcare and so on. The investment period of the Fund ended in September 2018 and the Fund Manager is currently focusing on exits, collections and distributions. Since the end of the investment period, the Fund Manager has achieved two exits from investments with the most recent exit having a 1.6x multiplier.
During the current period, the Fund’s net assets value decreased which was mostly due to distribution to unitholders as well as due to the Fund expenses that were offset by income in the form of recovered debt. The original life of the Fund expired in September 2021 and the Fund was granted a one-year extension by the unitholders in line with the terms and conditions of the Fund that allow for two one-year extensions.
3.7.3 Client Advisory Services
ICD’s asset management business has been actively working over the last year to develop new advisory products. The goal is to i) execute, grow and close client advisory mandates in line with ICD’s fee growth strategy, ii) to enhance ICD’s asset management business model by identifying new commercial opportunities for partnerships and iii) to raise the development impact multiplier for the universe of Islamic asset management products and increase penetration in the space. Two areas for potential advisory products can be defined as:
• Asset Management Advisory: Advisory services for selected initiatives, encompassing fund establishment, fund domiciliation, fund manager selection, event management and more; and
• Fund Management Services: To design, structure, launch and administer various fund initiatives operating within agreed member countries.
In its first year of operation, ICD’s asset management business pursued product development and worked
on its first proposal on Shari’ah advisory for a
launched trade finance. Despite the niche task, the rewards and experience of the advisory arrangement will enable ICD to provide a platform and basis on which further new proposals will be developed for third party clients in our member countries specifically on more comprehensive offerings.
OUR OPERATIONS, ACTIVITIES AND PERFORMANCE: 2021 HIGHLIGHTS
The investment
objective of the Theemar Investment Fund is to provide equity funding to SMEs in Tunisia.
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