The private equity fund Falah Growth Fund has completed a deal of poultry farm acquisition in Karaganda region producing eggs under Zarechnoye trademark.

In August 2015, Falah Growth Fund (hereinafter the Fund) successfully exited from the investment in Karaganda Enegotcenter LLP (hereinafter the Company). The Fund's investment proceeds were channeled to expand the energy generating capacity of the Karaganda CHP-3 (combined heat and power plant).

Agricultural forum have passed in Astana. One of the speakers, the CIO of Falah Growth Fund Mr. David Herbada told “Kapital.kz” about problems of making investments in agriculture.

As it is known, today the deficit in the “long-term money” exists at Kazakhstan market, which significantly slows-down the growth of many organizations, the entire sectors and even the country’s economy in general. At this background the entire market needs some other business approaches with respect to additional financing. One of such approaches is represented by the services offered by the private equity funds (PE funds).

A large poultry factory producing high-quality chicken eggs is situated in Karasai district of the Almaty region. The state business supporting programme helped this agricultural enterprise to develop.

A Special for a Special Company. The jury of the “Choice of the Year” national award has set a special nomination "Investment project in agriculture" for the Kazakh-Arab private equity fund. Falah Growth Fund was awarded a High Quality Mark for pulling of a major Kazakhstani enterprise from collapse.

Joint UAE-Kazakhstan private equity fund Falah Growth Fund has invested and manages two portfolio companies: Karaganda Energocenter LLP, a heat and electricity producer located in Karaganda, and Alsad Kazakhstan LLP, a poultry farm situated in Karasai district of Almaty region focused on the production of top quality fresh eggs. In total the combined investment into both projects is around USD 75 million.

The economic "thaw" which began in Kazakhstan in 2012 galvanizes Private Equity funds into action. However, business owners should be prepared for active involvement of the funds in decision-making process. This in an exclusive interview to “Къ” of Mr. David Herbada, CIO of Falah Growth Fund managing company.

Since the beginning of 2013, the output growth in agriculture exceeded 21 billion tenge, which is 2.2% more compared with 2012. The largest share of this volume or 19.5 billion tenge falls on livestock and poultry products.

On May 1, 2013 the Fund delegation under the direction of Mr. Khalifa Al Romaithi and Mr. David Herbada held a working visit to Karaganda CHP-3.