Investment Strategy

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RISK & GUARANTEE

The investment opportunities will be risky in nature.
The investors will have an oporutnity to seek third party opinion, and test their risk appetite before they invest.
For this case, investments are not guaranteed, the network will do the job to analyze and advise the members on the risk exposures

RETURN

The network will use a hurdle rate of annualized ROI of 15%.
No investment opportunity will be presented to members if it has less than 15% annualized return

EXIT MULTIPLES

For investors who will invest in start-ups, will have an opportunity to generate multiple returns on their investment during exit.
The average return in the region ranges between 3x to 4x exit return

INSTRUMENTS

  • Mudarabah shall be used for investing in start-ups.
  • For working capital financing, members will invest by a range of instruments depending on the structure of the specific opportunity.

These include murabaha, ijaraha, and salaam

  • All investment opportunities will be screened by sharia scholars to certify their halal compliance.

INVESTMENT APPROACH

  • SINGLE INVESTMENTS – Investing individually into the opportunity
  • GROUP INVESTING – Investing with other members as a pool
  • CO-INVESTING – Invest with other experienced and institutional investors outside the network such as Islamic banks, Waqf Funds, etc