Presentation of the International Funds based on the Islamic Finance System Model- Challeges in the...
24
OUSUL VENTURES USCATMENA Life Science/HealthTech Fund
-
Upload
ascame -
Category
Economy & Finance
-
view
262 -
download
1
Transcript of Presentation of the International Funds based on the Islamic Finance System Model- Challeges in the...
OUSUL VENTURES US-‐CAT-‐MENA Life Science/Health-‐Tech Fund
CHALLENGES IN THE
MENA ECONOMIES
Challenges in MENA Economies: Innovation? Ibn Sina (Avicenna)
(980-‐1037)
Abu Bakr Al-‐Razi
(865-‐925) (722-‐804)
Jabir Ibn Haiyan Omar Khayyam
(1048 – 1131)
Al-‐Khwarizmi
(780 – 850)
Al-‐Battani
(858-‐929)
Ibn Al-‐Haytham
(965-‐1040)
Ibn Zuhr
(1091-‐1161)
Challenges in Oil-Producing MENA
2030 Visions (underway…)
But … If You Build It Will “It” Come??
HIDDEN GEM OF MED: CATALONIA
15 YRS+ LIFE SCIENCE ECOSYSTEM
15 yrs+ CAT Life Science Ecosystem
Business
Infrastructure
People
Expertise
Location
Regulatory Framework
120 Life Science Institutions -‐ Science & Tech Parks, University Hospitals, Research & Technology Centers,…
512 Life Science Companies (6%+ of BCN GDP)-‐ Biotech, Med Tech and Pharmaceutical Companies
5900 Researchers in Hospitals and Research Institutes
World renowned clinical research; 3% of Scienti]ic Publications in Europe -‐ superior to Germany and France (per capita) ; 3.3% of European Science Grants
Gateway to Europe from MENA and Asia
Pro-‐business regulatory and legal environment
BioRegion of Catalonia Montserrat Vendrell, CEO: • Since April 2007, CEO of Biocat, the organization that coordinates and promotes the BioRegion of Catalonia, the biotechnology, biomedicine and innovative medical technology cluster in Catalonia.
• From April 2014, general manager of the Barcelona Science Park (PCB). Ms. Vendrell has been linked to the PCB, the ]irst in Spain, since it was created, acting as scientiYic director (1997-‐2005) and later deputy general manager (2005-‐2007). She will take over management of the PCB while remaining in her current post as Biocat’s director.
• Since March 2012, Vendrell is the chair of the Council of European Bioregions(CEBR), the ]irst network of European bioregions created in 2006 with nearly one hundred members including Biocat.
• Dr. Vendrell holds a PhD in Biology (Universitat de Barcelona) and a long experience in biomedical research in different international institutions. She holds a Science Communication Master degree (UPF, 1997) and an Executive Management Degree (IESE, PDG-‐2007).
Goal: Bay Area Life Science Ecosystem
! 1,377 Bio-‐Tech/Life Science companies
! Largest concentration of Bio-‐Tech/Life Science companies in the U.S., with total worldwide revenues of $4.1B, exports of $2.7B and NIH grant awards of $1.2B
! 250,000 employees in the Bio-‐Tech/Life Science industry.
! The largest aggregation of research universities and federal research institutions in U.S.
! Universities producing more Ph.D. Scientists and Engineers that any other area in U.S.
! California is the leading state in Venture Capital funding in Health-‐Tech = ~50% of total Health-‐Tech investments in U.S.
CURRENT FIGURES:
Origins of Bay Area Life Science Ecosystem
1976
1980
1982 2014
INDUSTRY ORIGINS : The Genentech Story
Venture Capitalist invests in two scientists from Stanford and the University of California who discovered a breakthrough for using genetic engineering to diagnose and combat disease.
Genentech undertook an IPO and raised $35M
Genentech markets the ]irst Human Insulin.
Genentech employs more than 13,000 people. Purchased by Roche in 2009 for ~46B.
Pioneers of Bay Area Life Science Ecosystem Guy Nohra, Co-‐Founder, Partner: • Co-‐founder of Alta Partners, since 1996, funding over 145 companies in the healthcare/life
sciences sector. • Among ]irms with the highest number of M&A or IPO exits in the industry, including over 30
exits over the past ]ive years. • Has been involved in the funding and development of notable medical technology and life science
companies including AcelRx, ATS Medical, Cutera, Innerdyne, R2 Technology, deCODE genetics, and Vesica.
• Currently, serves on the board of directors of several companies including Bioventus, Carbylan Biosurgery, Cerenis Therapeutics, PneumRx, USGI Medical, VertiHlex, and ZS Pharma, and is the Chairman of the Board of USGI Medical and ZS Pharma.
• Also served on the board of directors of the Medical Device Manufacturing Association (MDMA) from 2003 to 2013 and is now a Board Member Emeritus.
Origins of Bay Area Life Science Ecosystem INDUSTRY DEVELOPMENT
Government/ Institutions Venture Capital Markets
Innovation Inc.
Universities/ Hospitals
IPO
LIFE SCIENCES VENTURE CAPITAL OPPORTUNITIES
FOR ISLAMIC FINANCE
Abdi Shayesteh, Esq., Co-‐Founder, Ousul Ventures: • Is a recognized legal expert in representing global Yinancial Yirms in regard to their regulatory
matters, and conventional and Shariah-‐compliant cross-‐border investments and Yinancial transactions.
• Served as Deputy General Counsel for Mitsubishi UFJ Financial Group, Inc., Japan's largest Yinancial group. Special legal advisor to MUFG’s US and Tokyo senior management teams, and he has been credited for successfully championing several cross-‐border projects and government-‐related initiatives.
• Was a senior attorney and a member of the Middle East Investments and Islamic Finance Practice Groups at King & Spalding in New York, where he represented leading GCC banks and investment ]irms with regard to their US-‐bound Shariah-‐compliant investment funds. Was the key Yirm spokesmen for the Practice Group.
• Served at the Federal Reserve Bank of New York, where he was one of the youngest members of the Federal Reserve’s Islamic Banking Working Group-‐ a high proYile team of regulators focused on Shari’ah-‐compliant banking products in the US. With his leadership, he helped launch the Yirst Islamic Banking Interagency Group comprised of US and foreign regulators.
• His early career was in Silicon Valley, where he became General Counsel at one of the Yirst, nationwide internet-‐based mortgage companies.
Islamic Finance in the West
Islamic Finance in the West
" Islamophobia: Focus on Offense vs. Defense
# Invest in Goodwill Activities in the West (e.g., Job Creation, Econ Dev.)
" Diversify Asset Class away from RE
" Investment in West to Contribute Back to Human
Development in MENA/Gulf
" Dont waste resources trying to restructure conventional
products to look like Shariah-‐compliant products. Rather,
focus on what is naturally shariah-‐compliant.
Lessons learned from United States …
Overview and History of Islamic Venture Capital
• Historically, Venture Capital (“VC”) started from the Islamic concept of “mudharabah”, a form of partnership used even before Islam by Arab traders.
• Later on, this concept was formalised and embodied in Islamic law by the Muslim jurists, which is now better known as ]iqh muamalat (Islamic transaction).
• As Islamic culture spread across the world, the mudharabah concept also developed and continued to be used by Islamic businessman until the 19th century.
• In the 10th century, the concept of mudharabah was taken up by the Italian and spread through Europe.
Overview and History of Islamic Venture Capital Foundations of Shariah-‐compliant Investing:
" Money must be invested in projects and ventures for the generation of activities for the beneYits of mankind and in the process, for proYits.
" This is precisely why Islamic Yinance praises and encourages the application of Yinance in the Yinancing of real economic activities.
" The returns should be earned by active involvement and participation in the business risks in the investment (and not returns on lending)
" Truer form of Islamic Yinancing or investment structure should have that element of sharing of proYit and loss (COMPARE TO MURABAHA).
" Shariah Screens still there (no riba, haram products, conventional insurance, gambling etc.)
Common Shariah-based structures for VC (A) MUDHARABAH: • A contract made between two parties to Yinance a business venture. The parties are a rabb al-‐mal (investor) who solely provides the capital and mudharib (entrepreneur) who solely manages the project.
• If the venture is proYitable, the pro]it will be distributed based on a pre-‐agreed ratio.
• In the event of a business loss, it should be borne solely by the capital provider, to the extent of the capital contribution.
• The key to a Mudharabah structure is the fact that the manager cannot be placed at risk to bear losses, unless proven negligent.
Common Shariah-based structures for VC (B) MUSHARAKAH: • Musharakah is a partnership between two parties or more to Yinance a business venture whereby all parties contribute capital either in the form of cash or in kind.
• Pro]its are shared at an pre-‐agreed ratio while in the event of a loss, the loss shall be shared on the basis of capital contribution.
(C) WAKALAH: • A contract where a party (“the Principal”) authorizes the other party or parties (“the Agent”) to act on his behalf, based on the agreed terms and conditions.
• Pursuant to the Wakalah contract, it confers the power and rights to the Agent to act on behalf of the Principal as long as the Principal is alive.
Mudharabah/Musharaka = VC Fund Structure
Manager/Mudharib (€1M)
Investor/Rabb al-‐Mal (€99M)
Venture Capital Fund Co. (€100MCommitted Capital)
€1m Co. A
€2m Co. B
€5m Co. C Etc.
Inv. Committee
Shariah Advisor
Musharaka
Mudarabah
Wakalah
Islamic Finance Opportunities In Life Sciences
Experience
Knowledge
US
MENA
CAT
€€€
" MENA Econ. Challenges
" Collaboration w/ CAT LS Eco " VC = Pathway to Diversi]ied Economy in LS
" Goodwill Investments in the West
" Diversify away from RE
" MENA Human Development
" VC=Naturally Shairah-‐Compliant
Collaboration Opportunities CAT-MENA
Shared R&D Technology Tranfer Entrepreneurial Training & Mentorship Commercialization
Distribution Manufacturing Professional Training Capital Markets
PREFERENCIAL RIGHTS TO…
