Qatar - In February 2024, the Qatar Investment Authority (QIA) launched its inaugural venture capital Fund of Funds, an initiative aimed at enhancing the venture capital landscape in Qatar. QIA plans to collaborate with fund managers to offer targeted co-investments. Fund managers seeking investment must complete an application pack and meet QIA's stringent application requirements and eligibility criteria, ensuring that only the most capable and experienced managers are considered.

Below is a comprehensive breakdown of these criteria, essential for any fund manager preparing their application.

1. Average Internal Rate of Return (IRR)

To qualify, fund managers must demonstrate a track record of achieving an average IRR above 10% (or the respective market average). Additionally, there is a requirement of a minimum 1.6 multiple for a holding period of five years for at least one of their previous funds. This criterion highlights the need for a proven ability to deliver strong financial performance over a sustained period.

2. Management Experience

The management team is required to include at least three individuals, each possessing a minimum of 10 years of experience in venture capital funds. This ensures that the team has the necessary expertise and track record in managing and growing investments in the venture capital space.

3. Mandatory Venture Capital Investments

The fund's primary focus must be on venture capital or equity investments. This focus aligns with QIA's strategic objective to stimulate the venture capital sector in Qatar, promoting innovation and entrepreneurship.

4. Permanent Presence in Qatar

Fund managers must commit to establishing and maintaining an office in Qatar. Senior team members are expected to be based in the state, demonstrating a long-term commitment to the Qatari market and ensuring active participation in the local venture capital ecosystem.

5. Comprehensive Business Plan

A clear and detailed business plan is crucial. The plan should outline the fund's commitment to developing the venture capital ecosystem in Qatar through planned local investments and active ecosystem involvement. This includes strategies for supporting local startups and integrating into the broader entrepreneurial landscape.

For fund managers aiming to tap into QIA’s resources, meeting these rigorous criteria is essential. The QIA's focus on past performance and management expertise highlights its dedication to build a thriving venture capital environment in Qatar.

Key Takeaways for Fund Managers:

  • Demonstrate a strong historical IRR and successful fund performance.
  • Ensure your management team has significant venture capital experience.
  • Focus primarily on venture capital or equity investments.
  • Commit to a permanent operational presence in Qatar.
  • Develop a comprehensive business plan that supports Qatar’s venture capital ecosystem.

By adhering to these guidelines, fund managers can position themselves as ideal candidates for QIA’s investment, contributing to Qatar’s ambitious vision for a diversified and innovative economy.

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