 In this short module, we shall discuss a structure of an Islamic private equity fund. These few last few modules, we are looking into different topics to give you a flavor of what is happening in different respects, in different domains, in different fields with respect to Islamic finance. Islamic private equity fund is a private equity fund. Now, global equity funds, which we referred to previously, they actually invest in listed stocks of the company. Private equity, however, is not about the public equity, rather, this is about investing in companies privately of the market. So Islamic private equity funds in the past, especially before COVID, they were getting a lot of attention and respect. And hence, it's important to look at a structure of a private equity fund to see how an Islamic private equity fund would work. In the case of a private equity fund, whether this is Islamic or otherwise, in the center, we have a general partner. This is the terminology used in private equity fund management. This general partner is actually a management company. This company manages the whole things about the private equity investments. And this is the company which sets up an Islamic private equity fund. And it manages this fund either on a Vakala basis or in some cases on Mudarbha basis. But mostly, this is on the basis of Vakala. Now, there are investors, of course. They are known as limited partners. And these limited partners, they are big organizations, big businesses. They could be banks. They could be large corporations. They could be even sovereigns. They could be sovereign wealth funds set up by a government. And private equity firms normally are quite big in size. In case of Islamic private equity funds, they are not that big in size. One private equity firm, not a fund called Fudger Capital in Dubai, I think it is now managing about 20 billion US dollars under management. So these limited partners, they can be investment funds. They could be pension funds. They could be the Kaful and insurance companies. And of course, they could be sovereign wealth funds set up by the government. And they do not invest straight away with the Islamic private equity fund or in the Islamic private equity fund. Rather, they would give their limits. For example, an Islamic investment bank may say that we are committed to invest 500 million. So that 500 million is with us. Whenever the Islamic private equity fund is ready to bring us a project, we would look into it and then you can draw down. So these drawdowns, they happen as and when an investment project is identified and is found to be worthy of investment. So in this way, whenever there is an investment identified and ready, drawdowns take place and through the Islamic private equity fund, these projects are bought. These investments are made. And these are direct investments. They are based on basically, this is an example of profit loss sharing. You are investing in, you are buying these projects. For example, this could be an electricity company. You just buy the whole electricity company because you think that you can improve its efficiency, improve the profitability and then sell it in the market to generate some profit for the limited partners. So value creation is done by way of acquiring these investments, improving them and of course, then selling them. Once these investments are sold, these proceeds, of course, they are divided between the general partner. They get some share in these proceeds as part of their management fee. And of course, a major bulk of these proceeds, these profits, goes back to the limited partners. So this is a very simple structure of an Islamic private equity fund. There are so many Islamic contracts which you can identify they are used. Of course, this Wakala agreement is there. And this Wakala agreement would have a fixed fee component and a variable fee component, which would allow the general partner to receive a performance based bonus from the sale slash proceeds of the successful investment. And this is how, and of course, there would be when we are buying these investments over here, there would be a number of elements of sale. There could be some elements of lease, ejara, and in certain cases, for example, if this investment is only partly bought by the private equity fund, it buys only 60% in this investment one, then there would be some elements of Mosharka agreement between the existing investors in this project along with the private equity fund.