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Barak to launch new Funds

Anna Lyudvig
Aug. 2, 2021, 10:11 p.m.
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Barak Fund Management has decided to launch two new funds - the Emerging Markets Term Fund and the Emerging Market High Yield Fund.

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Barak Fund Management has decided to launch two new funds - the Emerging Markets Term Fund and the Emerging Market High Yield Fund.

Existing investors whose mandates permit will continue to share in the growth of the private credit asset class in emerging markets via these funds.

Barak said that the new Funds will replicate its historical success.

“These New Funds have been modernised to suit the current credit opportunities presenting themselves from our high-quality network and internal intellectual property.”

The new Funds, which will be established in the Cayman Islands, will continue to pursue impact orientated private credit lending opportunities.

Barak Fund Management has since inception ensured a complete alignment of interests with its investors by investing the vast majority of its performance fees across the funds it manages alongside investors and will continue to do so by committing capital into the new Funds.

“We are excited about this new growth phase in the business, and we are now actively looking to attract top talent into the organisation as we expand."

In addition, Barak decided to open an office in the renowned Abu Dhabi Global Market (ADGM), where it is in the process of becoming licensed with the Financial Services Regulatory Authority.

“The ADGM based impact investing funds will have a similar investment strategy with an expanded geographic focus into the Middle East in addition to Africa.” Barak said it has already received support from Middle-East based investors who will invest in these new impact-orientated alternative lending funds once registered."

In addition, Barak is in the final stages of creating a platform for a large Chinese state-owned enterprise to allow them to partake in trade in Africa and the Middle East.

Since its founding in 2008, Barak has established seven funds with a total AUM of $1.3bn.

Its flagship fund, the Barak Structured Trade Finance Fund is the largest of its kind in Africa.

Barak has provided trade finance and alternative lending to companies that enables economic growth and job creation in the agriculture and food security sectors.

To pro-actively manage the challenges posed by Covid-19 in the best interests of all shareholders, the Board of the Fund and Barak placed redemptions on hold, with numerous funds suspended in March 2020.

Barak also made appropriate provisions in the Fund financials.

Barak has managed its investment portfolio throughout this process to maintain investor value and protect the asset base.

“The outcomes achieved for investors to date are confirmed by the audited financial statements for the period ended December 31, 2020. The suspension has been lifted for three of the Barak funds,” the company said.

Barak said that the pandemic will continue to impact liquidity in the short tomedium term (being at least 18 months), hence the firm has decided to wind down the remaining three funds in a controlled way to balance those investors requiring redemption with the need to maximise value for all investors.

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