13th November 2009, www.dailymirror.lk, By Sunimalee Dias
A new private equity fund will be launched next week in a bid to attract foreign investors in order to generate foreign investment for local non-listed companies initially, according to the Fund Chairman.
In an interview with the Daily Mirror FT, Leopard Sri Lanka Fund Chairman Ranjith Fernando pointed out that the private equity fund would be set up to raise US$ 100 million investment in private non-listed companies.
The purpose behind the launch is to attract foreign investors in order to raise capital for local firms that intend to expand operations. The fund is expected to commence raising capital in January.
Fernando noted that this risk capital would be used as an investment to go into long-term equity position.
The Chairman of United Motors, Fernando sits on the boards of many corporate establishments in Sri Lanka including Commercial Bank and Piramal Glass. During his tenure at NDB, he played a pivotal role in developing the venture capital industry in Sri Lanka by promoting NDB Ventures and later promoting Ayojana. Fernando brings a wealth of commercial and investment experience to the Leopard team.
Leopard Sri Lanka will focus on building a diversified portfolio of leading businesses in key sectors such as tourism, retailing, food processing, infrastructure, financial services and property development.
The company will also partner with experienced foreign operators and/or local groups; assist portfolio companies with corporate governance, business strategy, introductions and recruitment; and exit investments via stock market listings or sales to investment partners, strategic investors or other investment funds.
Leopard Capital is the partner that raised US$ 130 million in Cambodia and is confident of raising US$ 100 million in Sri Lanka.
The limited partnership is on a 50-50 joint venture between Orion and Leopard Capital, with the latter taking on the lead role in raising capital while the former would be involved in carrying out local operations in carrying out deals.
At the upcoming investor forum scheduled to be held on November 20, around 20 investors will arrive in Colombo and Sri Lanka will showcase its potential in sectors such as tourism, infrastructure and agriculture value-added products during the two day programme.
Managing Partner Nirosh De Silva said that the challenge would be “to get the money that we can utilise and not just build a dream and also check out on how to enter the IT field.”
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