Nochi Dankner, the chairman of IDB Holding Corp. Ltd. (TASE:IDBH) will invest almost NIS 1 billion ($250 million) in emerging markets, alongside a Qatar sovereign wealth fund and a Saudi Arabian group. IDB units Koor Industries Ltd. (TASE:KOR) and Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) will each invest $125 million in the Credit Suisse Emerging Markets Credit Opportunity Fund.
The Credit Suisse Emerging Markets Credit Opportunity Fund is now being established. It is a private equity fund that will manage $1-1.1 billion; Dankner's share in the fund is therefore around 25%.
Other investors in the fund will be Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) corporations, as well as three of its main shareholders: IDB, the Qatar Investment Authority, and The Olayan Group of Saudi Arabia, each of which will also invest $250 million.
The Credit Suisse Emerging Markets Credit Opportunity Fund will mainly invest in bonds and other debt instruments in emerging markets. Koor and Clal Insurance said in their joint notice to the TASE, "The fund intends to invest in emerging markets in Latin America, Asia (except for Japan), and emerging markets of Europe, the Middle East and Africa."
Dankner will work closely with the Qataris and Saudis, as each of them will appoint a representative on the fund's investment advisory committee. IDB's representative will be Dankner personally.
Clal Insurance's share price fell 1.6% in morning trading to NIS 77.15 and Koor's share price fell 3.6% to NIS 78.71.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010
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