IDB joins $1 billion fund with Saudi, Qatari groups

Fund will be managed by Credit Suisse and intends to focus on investment opportunities, mainly through the provision of credit and bonds, in emerging markets.

By SHARON WROBEL
August 13, 2010 05:00
1 minute read.
Trader watches the stocks

Trader watches the stocks 311. (photo credit: AP)

IDB Holding Corp. will launch a $1 billion fund with Credit Suisse Group AG and two groups from Saudi Arabia and Qatar that will invest in emerging markets, IDB announced Thursday in a statement.

“We see a great potential in the emerging markets, which constitute a long-term growth engine for the global economy,” IDB chairman Nochi Dankner said. “The intensification of the emerging markets is part of a significant financial-political process occurring throughout world, of which the financial crisis was but one of its peaks, where the economic hegemony is gradually shifting from the West to the East.

“The investment in the Emerging Market Credit Opportunity Fund (EMCO) will enable us to deepen the activities of IDB in countries such as China, India and Brazil, as well as to create a presence in other countries in Asia and Latin America that are characterized by high growth rates and a high potential for value creation.

“This move constitutes an important tier in our strategy for the constant growth of IDB’s overseas activities, combined with a balanced business mix of investments in developed markets and emerging markets.”

The fund will be jointly launched by Credit Suisse and three of its largest shareholders, with each of the four investing $250 million. IDB will invest through two of its subsidiaries, Koor Industries and Clal Insurance, which will invest $125m. each, pending approval by their boards of directors.

The other two Credit Suisse shareholders in the fund are the Saudi Arabian investment firm Olayan Group, a private multinational enterprise comprising 50 companies and affiliated businesses, and the Qatar Investment Authority (QIA), a sovereign-wealth fund.

Koor holds a 3.2 percent stake in Credit Suisse, Olayan 6.6% and QIA 8.9%.

The fund will be managed by Credit Suisse and intends to focus on investment opportunities, mainly through the provision of credit and bonds, in emerging markets in Latin America, Asia (excluding Japan), Europe, the Middle East and Africa.


Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS

Cookie Settings