Reed Smith advises SEDCO Capital on the first closing of its new Shariah-compliant private equity co-investment fund

Reed Smith announced that it advised its long-standing client SEDCO Capital on the initial closing of SC Private Equity Global Co-Investment Master Fund II, LP (the Fund), its new Shariah-compliant fund for co-investment alongside private equity managers.

The Fund’s strategy is to co-invest alongside private equity managers or other financial institutions in growing mid-market companies in the Americas, Europe and Asia.  The Fund will target investments in sectors including, but not limited to, the healthcare, tech-enabled, consumer, business services and industrial sectors.

The Fund will leverage SEDCO Capital’s broad network of partnerships to access co-investment opportunities in its targeted sectors to provide diversified exposure to mid-market growth companies benefiting from regional and/or sector specialist private equity fund managers.

Reed Smith acted as lead counsel on the formation of the Fund, providing combined legal support from London and the U.S., and advised on the establishment and structuring of the Fund through to closing, working closely alongside Walkers’ Cayman Islands legal team.

Global Corporate Group partners Shervin Shameli and James Mercadante co-led Reed Smith’s legal team, with support from Tim Dolan, Adela Mues, Angelo Ciavarella, Gareth Amdor, Uden de Silva and Jamie Fryer.

Shameli, based in London, said, “We have enjoyed working with the team at SEDCO Capital in connection with the formation and closing and its new Shariah-compliant co-investment fund, and are delighted to see the team achieve a very successful first close.  Co-investment opportunities remain front and centre of most LPs’ minds as they look to gain access to some of the top performing companies in private equity managers’ portfolios, and we strongly believe that SEDCO Capital, with its deep network of partnerships, is very well placed to present some compelling opportunities.  This was also a fantastic opportunity for us to demonstrate our global capabilities as a firm, leveraging funds, tax and regulatory expertise across our teams in London, the U.S. and the Middle East throughout the process.”

Samer Abu Aker, CEO of SEDCO Capital, said, “On behalf of SEDCO Capital, I would like to express my gratitude to the great team at Reed Smith for its stalwart advisory support in getting to the first close of the SC Private Equity Global Co-Investment Master Fund II.  We, at SEDCO Capital, are pioneers in Shariah-compliant private equity investments in the high growth mid-market segment. This first close reflects our investors’ belief in the opportunities presented by the Fund’s objectives and in SEDCO Capital’s time-tested ability to unlock significant value in the process. With this first close, we are also proud to have completed three transactions in high growth sectors in two continents, another testimony to our unique global reach to Shariah compliant co-investments.”