INVESTMENTS AND FUNDS
Early Stage Businesses
The investment Manager anticipates that a reasonable number of selected early stage businesses will represent attractive investments for the Fund. The IM will generally identify a reputable, experienced technical partner with a strong track record to provide the necessary expertise and operational skills and will only consider investments with robust, realistic and achievable business plans and especially cash flow profiles, a strong, experienced management team , and the ability to add value.
Growth Capital for Existing Businesses
A dearth of financing alternatives has led to a distinct lack if funding of otherwise solid companies to profitably grow their businesses. Additionally, such companies may seek the international financial and advisory expertise of a financial investor.
Strategic and Consolidation Opportunities
There is likely to be an increasing need for private equity to support the restructuring and re-organization of companies preparing fro a stock market listing, or other exit in the future. Additionally, consolidation of fragmented industries may provide attractive investment opportunities.
Real Estate Developments
Given the planned large-scale infrastructure upgrade Program and the drive towards diversifying the economy, the IM sees strong opportunities within this sector and will seek to develop and co-develop small to medium sized projects with selected technical partners.
Tuareg Capital raised Libya's first ever Private Equity fund. The Libya Fund was a US$30 million closed-ended investment company incorporated in the Cayman Islands through which investors participated in private equity investment opportunities in Libya. The Fund enjoyed its first closing in February 2007. Subsequent closings took place later on as Tuareg Capital capitalized on the Libyan opportunity and obtained increased levels of commitment pursuant to deal flow.
Libya, with a strategic location in the Southern Mediterranean, is the wealthiest country in North Africa, one of the world's most significant oil producers and potentially, an important tourism destination. With the lifting of sanctions in 2004 and as demonstrated by the recent flow of positive news, Libya is re-integrating with the world. Following a difficult few decades, Libya is now utilizing revenues from its substantial energy resources to undertake a huge infrastructure upgrade Program. As importantly, Libya is also implementing significant economic liberalization and reform policies and is seeking to diversify its sources of income through developing the private sector and encouraging Foreign Direct Investment ("FDI").
The primary objective of the Fund was to achieve capital appreciation through selected direct equity and equity-related investments in Libyan ventures. The Fund operated in accordance with Sharia'a principles. The Investment Manager believed that a wealth of opportunities to make attractive investments existed on account of a number of factors, including, the economic liberalization measures being implemented, the strong growth of the Libyan economy, the lack of diversified sources of funding, and the greater attention given by the Libyan authorities at the time to developing a comprehensive private sector and introducing foreign capital and expertise.
Tuareg capital is currently in the process of establishing a USD 50-100 million fund in Europe with the help of other International renowned organizations, as well as governments, to target the technology sector.