Islamic Private Equity: An Examination of the Use of Sharia Compliant Structures in Private Equity

Islamic private equity received a lot of attention prior to 2008, with a clutch of high profile transactions using Sharia compliant financing. With the onset of the financial crisis the hype behind the industry disappeared. However the industry still has a part to play in today's financial economy, from supporting infrastructure projects in developing economies especially in Muslim countries to providing more equitable forms of partnership transactions in both developing and developed economies. The cases analysed in this text show how innovation is taking place in the industry, with the theoretical understanding of what the most suitable Sharia compliant structures are, and also a growing desire to implement and iterate these structures through their use. This is necessary for the industry to be propelled forward by demonstrating the role of Islamic Private Equity as an asset class.