Evolvence to float more funds ahead of IPO

By John Bowker

LONDON (Reuters) - Dubai-based private equity firm Evolvence Capital Ltd is planning to float three more capital funds before launching a full IPO of the company, founder and Chief Executive Khaled Al-Muhairy said on Tuesday.

The group -- which has around $1 billion under management -- is working on an IPO for its second investment fund of 2007 and Al-Muhairy told the Reuters Hedge Fund and Private Equity Summit in London he wants to have floated a total of four over the next 18 months to two years.

Al-Muhairy sees the private equity model evolving to one that relies more heavily on permanently available capital through public markets instead of the steady rounds of fund-raising required now.

"We at Evolvence believe permanent capital is a crucial element to everything we want to do," he said. "I think permanent capital can get you access to talented managers. Cash brings talent and that's a crucial element of our business."

Blackstone Group BG.UL, one of the world's largest buyout firms, created a stir in the industry when it unveiled plans last month for an IPO and Al-Muhairy is among the many in the world of private equity expecting that more are on the way.

"I honestly think Blackstone will not be the last," he said. "There will be many, many of them trying to raise money in the public market."

Evolvence, which floated Evolvence India Holdings Plc (EIH.L: Quote, Profile, Research, Stock Buzz) in late March, wants to raise more funds on public markets before perusing an IPO of the parent firm itself in a bid to create a more attractive vehicle for investors.

The second fund -- also to be launched on London's junior stock market AIM -- is set to be a U.S.-focused real estate fund looking to raise $200 million to $250 million, and will follow last month's raising of $65 million to be invested in India.  Continued...