The Tell Lebanon Infrastructure Fund announced on Monday 19th August the initial closing of its $100 million fund focused solely on infrastructure investments in Lebanon – the first in a series.
The Fund is managed by Tell Group’s FINMA regulated asset management subsidiary in Geneva, Switzerland and will provide investors with access to direct investment in a portfolio of carefully selected infrastructure and related sector projects at different development stages.
A disciplined process of timely acquisitions in portfolio project participations will be followed, based on risk and return criteria and fundamental sector analysis. The Fund team will use its specialized skill-set, experience, global network, and market presence to source projects and execute them with a private equity mindset and approach, in line with the Fund’s investment parameters, with the objective of maximizing risk-adjusted returns.
The Fund aims to capture the current opportunity for investing in infrastructure projects and related sectors in Lebanon that make up part of the cabinet endorsed Capital Investment Plan (“CIP”) including but not limited to the global CEDRE initiative and other potential opportunities in the country. The Fund’s initial closing is an important milestone for the achievement of the “investment in infrastructure initiative” of Lebanon which will pave the way for the country’s economic recovery and enhanced financial position in the region.
Lebanon has clearly set its path toward a sustained recovery, through several positive developments in recent years including the passage of a Public Private Partnership (“PPP”) law, the conclusion of its first oil and gas tenders, and the country embarking on an ambitious capital investment program.
The government’s CIP includes over 280 infrastructure projects over 12 years, valued at around $23 billion. These projects will have access to concessional financing and favorable project terms, presenting opportunities for investment into attractively funded PPP and other related sector development initiatives.
The CEDRE Conference, held in Paris in April last year, provided a great positive boost to Lebanon with c. $11.8 billion in low interest loans and grants pledged by donor countries and multilateral institutions. This reflected the confidence of the international community in Lebanon’s capability of dealing with current and future development challenges.
Sectors that will be considered by the Fund include transportation (roads, airports, sea ports); water and irrigation; wastewater; electricity (including renewable / alternative energy); telecommunications; solid waste; and tourism & industry. The Fund team has already identified a pipeline of 5-6 selected investments as potential targets for investment in a number of sectors including waste to energy, and the ICT sector. The first potential target investment for the Fund is currently in the due diligence phase by the manager of the Fund with second one following.
Tell Group, is a private equity and corporate advisory firm with a regulated presence in Europe, the Middle East and North Africa.
Over 25 family offices, UHNWIs, and institutions from Lebanon, Europe, and the GCC have committed to the Fund, sharing a common conviction in Lebanon and the infrastructure opportunity in the country.