Hedge fund strikes deal to donate 15% of Emirati transactions to youth foundation
Dalma Capital, a hedge fund registered in the Dubai International Financial Centre, has struck a deal with Emirates Foundation for Youth Development, the charity organisation chaired by Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, that could bring in millions of dirhams for the foundation’s projects.
Dalma is to donate 15 per cent of the fees it receives from any Emirati individual or institution to the foundation for its philanthropic initiatives in social inclusion, community engagement and leadership empowerment.
Salem Al Matroushi, an Emirati businessman who is also a shareholder in Dalma, said: “I am delighted Dalma is supporting the development of the social fabric of the UAE.”
The foundation is funded by direct government and contributions from the private sector.
Clare Woodcraft Scott, the foundation’s chief executive, said: “Without funding from the private sector we would not be able to work with the over 40,000 young people that we currently do. We hope this can turn into a long-term commitment.”
Most hedge funds typically charge clients a 2 per cent management fee and a 20 per cent performance-related gain on the return of an investment.
Howard Leedham, Dalma’s chief executive, said: “We appreciate that our fund must be taken on its own merits, but this programme specifically ensures that any return of investment to which the investor is entitled is completely unaffected by our donation. It is solely Dalma Capital that bears the cost of donation. We are delighted to have the opportunity to give back to the community to support such a critical area as youth development.”
Mr Leedham, a former British army commando, has been marketing Dalma’s Unified Return Fund in the region, which is believed to have attracted about US$12 million from investors. He has also been leading a push by the hedge fund industry to attract local funds into regional-based hedges, which have been a comparatively small part of the total investment scene.
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