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Delta Capital extends limit on Telco PE Fund

Bahrain-based Delta Capital has increased the size of its private equity fund to US$100m having reached its original US$75 million target earlier than expected.

Bahrain-based Delta Capital has increased the size of its private equity fund to US$100m having reached its original US$75 million target earlier than expected.

The firm, the private equity arm of telecom advisory firm Delta Partners, carried out the initial closure of its fund on February 28, one month ahead of its original end of March deadline.

It added, however, that it had extended the fund to US$100 million and will have a second and final closing on March 31.

Private equity funds often have more than one closing, a representative for Delta Partners explained.

The firm, which launched the Middle East telecom targeted fund in December last year, said it brought forward the closing of the fund because it wanted to start acting on potential investment opportunities.

Companies offering infrastructure services, payment solutions providers, long-distance operators and companies offering services complementary to other operators, Morton Kvammen, head of private equity at Delta Capital told IT Weekly.

Geographically, the firm will be concentrating on the GCC and some Levant countries with the investments, which will average US$8-12 million each, Kvammen said.

Delta Capital is targeting an annual rate of return in excess of 25% net of fees over the seven-year lifespan of the fund.

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