Report by Malaysia International Financial Centre Report
Islamic Private Equity and Venture Capital at a glance
As the Islamic financial industry continues to evolve and experience growth, it is also gaining sophistication in its appeal to demanding investors. As a prime example, Shariah-compliant Private Equity/Venture Capital (PE/VC) is an ideal model for Islamic finance as it represents the participatory modes of financing imbued with risk sharing concept. There is a very close relationship between conventional and Islamic PE/VC, in the sense that both offer a risk sharing concept rather than risk transfer. The equity-based structure and profit sharing nature, making it an ideal match for the Shariah-seeking investors.
Private Equity and Venture Capital – An Understanding
Shariah-compliant PE/VC is an ideal model for Islamic finance as it represents the participatory modes of financing imbued with risk sharing concept. The risk sharing mechanism reflects the concept of fairness and justice in business dealing where the notion of profit and loss sharing is reflected in its ideal form.
