Abraaj unveils its first offshore fund for Pakistan

Abraaj Capital has announced the launch of the first ever offshore fund for Pakistan by its portfolio firm BMA Capital. The BMA Pakistan Opportunities Fund is the first ever open-end, US Dollar denominated, offshore equity fund to be established for Pakistan. The Fund is aimed at institutional and high networth investors interested in taking advantage of the growth opportunities Pakistan presents today. The fund aims to provide long-term capital appreciation combined with capital preservation in periods of market volatility. It is open to institutional and professional investors residing outside Pakistan. Commenting on the launch of the offshore fund, Farrukh H. Khan, Chief Executive of BMA Capital, said: "We are pleased to launch the BMA Pakistan Opportunities Fund, which is the country’s first ever offshore fund. The fund will allow the international investment community a window through which they can take part in Pakistan’s phenomenal growth.” He added the fund aims to leverage BMA's strong presence in Pakistan's financial services and investment advisory industry over the last 15 years. “Our firm possesses a strong capability to provide cutting edge asset management solutions for our clients. Pakistan's asset management industry is at an early stage of development and BMA's goal is to quickly become an industry leader in asset management through a multi-product business model,” he added. Muddassar Malik, principal advisor to the Fund and a founder Director of BMA, said that Pakistani stocks present one of the world’s most attractive investment opportunities. Buoyed by sensible economic policies, Pakistan’s real GDP grew by 8.4% in 2005, making it the best performer in the world after China. He said that the Pakistani market is currently trading on a FY05 PE multiple of 10.1x. This is an average of a 37% discount to the Asia Pacific region and a 71% discount to the Middle Eastern markets. Average daily market turnover YTD is over US$570m, which is more than the combined turnover of Thailand, Malaysia, Indonesia and the Philippines. “Pakistani equities are trading at attractive discounts, offering tremendous medium to long-term opportunities for Middle Eastern investors.One of the ways in which Gulf investors can share in the tremendous growth occurring in Pakistan is through specially designed vehicles such as the BMA Pakistan Opportunities Fund, investing in the Pakistani Equity markets,” Malik added. BMA Capital is the Investment Advisor for the Pakistan Opportunities Fund. Tethys Advisors is the investment consultant to the fund and is represented by Dr. Tristan Clube who has over 15 years of experience in global emerging markets. BMA, Tethys Advisors and Abraaj Capital are each represented on the Fund’s Board. Currently BMA manages funds that have posted returns of over 35% on a year-on-year basis. BMA has a seasoned team of investment professionals with over fifty years of combined experience in the international and Pakistani capital markets. BMA recently successfully advised Etisalat on the privatisation of PTCL, which is the largest foreign investment in Pakistan’s history. As a result, Bloomberg has ranked BMA the top Pakistani & South Asian Investment Bank according to its M&A League Tables. BMA excels in six core areas of business including Capital Markets, Investment Banking, Research, Asset Management, Private Equity, and Retail Brokerage.