Many high net-worth Muslims and institutions in India and other countries get little or no return on their money because their investment patterns follow the Shariah code to comply with the teachings of the Quran. New Zealand-based Intellectual Capital Partners (I-Cap) has put together an Islamic private equity fund of $100 million (Rs 460 crore) to invest mainly in New Zealand and Australia. The funds have been raised in the Middle East and includes participation of non-resident Indians. Now, I-Cap is planning an India-specific fund. I-Cap global board member and MD of Indian operations Sharat Anand said, ‘‘we propose to have the first in a series of funds in place in India by around March next year for Muslim investors who follow the Shariah code. The value of this fund would be at least $100 million, which is the minimum size for a fund to be viable.’’ Anand says that such money in India can now be assured of good returns by subscribing to the proposed Islamic private equity fund whose investments abide by this code. ‘‘The minimum subscription from an individual or an institution would be $25,000-$50,000 (Rs 11.5-23 lakh) in India although the international practice is a floor limit of $50,000 usually. We are looking at investors not only from metros like Mumbai but even regions like Hyderabad, Gujarat and Uttar Pradesh,’’ he added. There is a sizeable population that is looking for such funds internationally and in India.
