How we leveraged technology and expertise to support the launch of Rakiza – Oman’s first infrastructure fund

The client

Set up as a joint venture, this fund was established by two managers: the first is an infrastructure manager wholly-owned by the Oman Investment Authority (formerly the State General Reserve Fund); the other is a UK-based investor, developer and fund manager of core infrastructure assets in the UK and Europe (already an Intertrust Group client).

The fund was established in early 2020, comprising a regulated closed-ended GP/LP investment fund structure in Guernsey. It then invests via an Omani closed-ended fund established with the Capital Market Authority of Oman. The first close happened in July 2020, raising an initial USD 400 million in investor commitments. Further closes are expected later in 2020 and 2021 to reach its target of USD 2 billion. Our services to the client include full fund administration, corporate secretarial, governance, regulatory and compliance services.

Their challenge

As part of the Sultanate of Oman’s fiscal reforms, the government is encouraging greater private sector participation in essential public services and infrastructure. Intertrust Group’s client was selected as the preferred overseas joint venture (JV) partner to support these reforms.

The fund wanted to combine local market knowledge and network with expertise and resources in the infrastructure sector. It sought to make infrastructure investments primarily in Oman, looking to capitalise on the current drive towards privatisation. However, a new JV has its own challenges, with both parties trying to find ways to work together. The decision to bring in an external fund administrator would help the JV parties to focus on the investments

However, it sought support for fund administration services so that it could keep the focus of its key players on the areas of their expertise. It also needed a services partner that could deal with the challenges of the fund being the first of its kind in Oman as well as one that could ensure the controls, processes and procedures were in place to support the JV arrangement.

Our solution

Intertrust Group was chosen for all fund administration services, including the initial set-up and gaining regulatory approvals for the fund structure in both jurisdictions. We service the master fund (Oman), the GP/LP (Guernsey) and additional entities.

Intertrust Group’s market-leading technology provides the flexibility and capabilities needed to deal with all aspects of the fund’s servicing requirements, including workflows, automation of waterfall calculations and investor reporting functions. Using our own proprietary technology, we can cater to the specific needs of the fund, with dashboard reporting set up in line with the requirements of both JV partners.

This bespoke service and operating model is designed to deal with both the JV arrangement and the uniqueness of the fund itself. We provided expertise and guidance – on operations, governance and regulatory perspectives – during the establishment phase, which helped to ensure the fund launched and operated as expected.

Now that it’s up and running, we provide a tailored-fee model that is designed to be as simple and straightforward as possible for fund investors, plus a full service offering – fund administration, corporate secretarial, governance, regulatory and compliance services – covering all entities within the structure. We conduct the quarterly NAV and financial statements with the LP capital accounts, along with quarterly GP management accounts and the annual audited accounts for all entities within the fund structure.

It’s hoped this will be the first of many Rakiza funds, with the Government of Oman keen to attract foreign investment into the country as a means to diversify its revenue streams.