IDB Holding Corp will launch a $1 billion fund with Credit Suisse Group AG and two groups from Saudi Arabia and Qatar that will invest in emerging markets, the company announced.
“We see a great potential in the emerging markets, which constitute a long-term growth engine for the global economy,” IDB Chairman Nochi Dankner said. “The intensification of the emerging markets is part of a significant financial-political process occurring throughout world, of which the financial crisis was but one of its peaks, where the economic hegemony is gradually shifting from the West to the East.
“The investment in the Emerging Market Credit Opportunity Fund (EMCO) will enable us to deepen the activities of IDB in countries such as China, India and Brazil, as well as to create a presence in other countries in Asia and Latin America that are characterized by high growth rates and a high potential for value creation," the Jerusalem Post quoted him as saying.
“This move constitutes an important tier in our strategy for the constant growth of IDB’s overseas activities, combined with a balanced business mix of investments in developed markets and emerging markets.”
According to the report, the fund will be jointly launched by Credit Suisse and three of its largest shareholders, with each of the four investing $250 million. IDB will invest through two of its subsidiaries, Koor Industries and Clal Insurance, which will invest $125m. each, pending approval by their boards of directors.
The other two Credit Suisse shareholders in the fund are the Saudi Arabian investment firm Olayan Group, a private multinational enterprise comprising 50 companies and affiliated businesses, and the Qatar Investment Authority (QIA), a sovereign-wealth fund.