30.04.2010 - BEE funding models: The Islamic option
From Fm.co.za: South Africa-based private equity firm ScandCo Capital Partners believes a model based on the principles of Islamic finance could be the solution. The Islamic model, which is a private equity arrangement, does not allow debt and is therefore a practical alternative, says ScandCo CEO Shukri Cornelius. Using this model, cash-strapped BEE partners would not be expected to outlay capital if share prices lost a chunk of their value. “Funding extended using the principles of Islamic finance would make a deal completely free of risk and uncertainty,” says Cornelius. It’s a factor that BEE partners in recent collapsed deals have been eyeing with interest.........................................Full Article: Source
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