The Iraq Fund - Presentation- Final 082213

The Iraq Fund, LP General Partner: Global Capital Investment Inc.

Global Capital Investment Inc. - 409 Illinois Ave. Suite 1A - Saint Charles, IL 60174

Phone: 630.762.1100 - Email: [email protected] - www.theiraqfund.com

© 2013 Global Capital Investment Inc. All Rights Reserved

A confidential presentation not intended for redistribution


A confidential presentation not intended for redistribution .

The Iraq Fund, LP Global Capital Investment Inc., General Partner



IMPORTANT DISCLAIMER

THIS IS NOT AN OFFERING OR THE SOLICITATION OF AN OFFER TO PURCHASE ANY INTEREST IN THE IRAQ

FUND, LP (THE “FUND”). ANY SUCH OFFER OR SOLICITATION WILL ONLY BE MADE TO QUALIFIED INVESTORS

BY MEANS OF A CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM AND ONLY IN THOSE JURISDICTIONS

WHERE PERMITTED BY LAW.

AN INVESTMENT IN THE FUND IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. OPPORTUNITIES FOR

WITHDRAWAL, REDEMPTION AND TRANSFERABILITY OF INTERESTS ARE RESTRICTED, SO INVESTORS MAY NOT

HAVE ACCESS TO CAPITAL WHEN IT IS NEEDED. THERE IS NO SECONDARY MARKET FOR THE INTERESTS AND

NONE IS EXPECTED TO DEVELOP.

THE FEES AND EXPENSES CHARGED IN CONNECTION WITH THIS INVESTMENT MAY BE HIGHER THAN THE

FEES AND EXPENSES OF OTHER INVESTMENT ALTERNATIVES AND MAY OFFSET PROFITS. NO ASSURANCE

CAN BE GIVEN THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED OR THAT AN INVESTOR WILL RECEIVE

A RETURN OF ALL OR PART OF HIS OR HER INVESTMENT. INVESTMENT RESULTS MAY VARY SUBSTANTIALLY

OVER ANY GIVEN TIME PERIOD.



Iraq: An Economic Snapshot 5

About Global Capital Investment, Inc. 6

- The Iraq Fund, LP 7

The Iraq Fund, LP

- The Opportunity 8 - Investment Objectives 24 - Investment Process 25 - Risk Management 28

Management Bios 29

Fund Terms 30

Legal, Administrative and Custodian 31

Table of Contents



• $60 billion in foreign investment in 2012

• GDP growth estimated at 9% for 2013 by IMF

• According to the EIA "Iraq has the fifth largest proven

crude oil reserves in the world, and it passed Iran as the second largest producer of crude oil in OPEC at the end of 2012.”

• Undeveloped oil reserves projected to rival world leader Saudi Arabia

• Inflation down from 32% in 2006 to 3.6% • Bank assets expanded more than 4X in last five years

Iraq: An Economic Snapshot Among the Iraq pioneers: BP Boeing CitiBank Exxon Mobil

France Telecom General Electric HSBC Honeywell International J.P. Morgan Chase

LaFarge Microsoft PepsiCo PricewaterhouseCoopers Shell Oil

"According to the IMF, Iraq is projected to grow faster than China in the next two years.”

-- U.S. Secretary of State Hillary Clinton



Global Capital Investment Inc., a Delaware-incorporated company, is

the general partner of The Iraq Fund, LP.

Formed in 2011 by Kenneth Kuhn, Global Capital Investment offers a

private investment fund for sophisticated investors who wish to

capitalize on the long-term growth potential of the emerging Iraqi

economy.

The fund seeks long-term capital appreciation over a broad range of

Iraqi-listed securities and a small number of private investments, most

probably IPO opportunities.

Investment in The Iraq Fund is a transparent and efficient way to

participate in the accelerating economic growth of a country that is

rich in resources and rapidly transitioning to a market economy. As

always, any investment should be viewed as a long-term commitment

and should only represent a portion of a portfolio.

About Global Capital Investment Inc.

Global Capital

Investment Inc. General Partner

The Iraq Fund, LP Delaware LP



The Iraq Fund, LP

Portfolio performance for Kenneth Kuhn’s previous Iraq-focused

fund returned twice as much as other widely tracked Iraq funds in

its first year. He plans no less for his latest creation, The Iraq Fund.

Through investment in Iraq's stock exchange, the fund will position

its portfolio to take advantage of post-war infrastructure rebuilding

and development of Iraq's oil reserves.

While focusing primarily on Iraq Stock Exchange equities, the fund

will have the agility to participate in a limited number of private

investment opportunities that focus on banking, manufacturing,

transportation, real estate, construction, agriculture, hospitality and

tourism.

While The Iraq Fund may invest 80-100% of its portfolio assets in ISX

equities, it could invest up to 20% in less-liquid, private companies.

In all cases, the fund will demand transparency of its holdings and

rely on the managing director’s macro-economic views of the

Iraqi economy and the expertise of its portfolio manager in making

investment decisions.

Pro-business and investment agenda of Iraqi

government

Developing market

economy; support from U.N., U.S. and

region

As of 2012, Iraq is currently

OPEC’s second-largest oil producer

Rising profits and earnings of

local companies, especially

banking sector

Why Invest in Iraq?

A growing number of international

companies see Iraq as a frontier market

with high potential return.



Rapid and significant strides toward government transparency and a market-based economy are helping

improve the business climate by lessening risk for outside investors.

Iraq remains a frontier market with the accompanying risk, but it is in a better position than many emerging

economies. Its post-war reconstruction receives strong support from the United States, the United Nations, the

International Monetary Fund and the World Bank.

This historic period provides investors with the opportunity to benefit from domestic and foreign investment in the

country’s proven oil reserves, banking, infrastructure upgrades, agricultural restoration and tourism growth that

will equal or exceed its successful MENA neighbors.

Risk

Management

Investment

Process

Fund

Objectives The Opportunity

Investment in Iraqi- listed securities

Investment in small number of private

companies and IPO

opportunities

80% to 100% 0% to 20% The Iraq

Fund, LP

“We plan to build upon the successes of our economic policies of the past few years and to accelerate the reconstruction and rehabilitation process.”

-- Dr. Rafe al-Essaw, Iraq minister of finance



Risk

Management

Investment

Process

Fund


In the 1990s, many thought the idea of investing in Russia’s volatile, unproven economy was fraught with risk. Others saw the potential for returns. In 1995, Russia formed its first stock exchange, the Russian Trading Index (RTS). In 15 years, the RTS appreciated by more than 1,400%. The Iraq Fund sees similarities in emerging investment opportunities in Iraq.

-75.00%

425.00%

925.00%

1425.00%

1925.00%

2425.00%

Russian Trading System Index (RTS) Russia Iraq

Estimated oil reserves:

150 to 200 million barrels

Estimated oil reserves:

200 to 300 million barrels

Economy decimated by

decades of Communist

rule

Economy destroyed by

dictatorship, sanctions

and three wars

Mature investment in

country

Growing foreign

investment interest



Risk

Management

Investment

Process

Fund


• Oil leading recovery

• Minimal national debt; strong international support

• Inflation reduced to healthy levels

• Expansionary monetary policies

Interest rates at 3.6%,

down from 32%

Inflation moderated

by more than one-third in

past few years

Exports, led by oil

production, have risen

dramatically

Debt acquired in

Hussein years has been forgiven

As key areas of the Iraq

economy continue to

improve, more investors will

recognize opportunities.

Early-stage investors will be

rewarded for their patience

and pioneering analysis of this

frontier market.

“Iraq has emerged…with enormous potential for investment; opportunities exist in all sectors.”

-- Dr. Sami al-Araji, Iraqi National Investment Commission chairman, October 2009



Risk

Management

Investment

Process

Fund


“Iraq is a giant that’s waking up and the opportunities are immense.” --Mayank Malik, Citi CEO for Levant– Bloomberg, June 27, 2013

Source: IMF Country Report No. 11/75

Economic growth has accelerated from 5.9

percent in 2010 to over 8.4 percent in 2012,

when oil production rose to a 30 year high.

Thanks to higher-than-expected oil revenues,

fiscal surpluses reached 4 percent of GDP in

2012.

Central Bank of Iraq (CBI) international

reserves rose from $61 billion at end 2011

to $70 billion at end-2012




Risk

Management

Investment

Process

Fund


Inflation has declined, from about 6 percent at

end-2011 to 3.6 percent at end of last year, mostly

as a result of lower imported food prices, and is

expected to increase only slightly in 2013.

The real exchange rate for Iraq’s currency been

appreciating over the past three years, and

remains broadly in line with fundamentals




Risk

Management

Investment

Process

Fund


Source: IMF, World Economic Outlook Database, April 2013

IMF Economic Projections for Iraq

0

100

200

300

400

2011 2012 2013 2014 2015 2016 2017 2018

181

213 233

254 276

305 336

371

Gross Domestic Product (Bln USD)

0

2000

4000

6000

8000

10000

2011 2012 2013 2014 2015 2016 2017 2018

5529

6305 6708

7073 7466

7997 8559

9184

GDP per capita (USD)



Risk

Management

Investment

Process

Fund


Source: IMF, World Economic Outlook Database, April 2013

IMF Economic Projections for Iraq (cont’d)

0

2

4

6

8

2011 2012 2013 2014 2015 2016 2017 2018

5.6 6.1

4.3

5.5 5.5 5.5 5.5 5.5

Inflation, average consumer prices (%)

25

29

33

37

41

45

2011 2012 2013 2014 2015 2016 2017 2018

32.7 33.7

34.8 35.9

37 38.1

39.2 40.3

Population (mlns)



Risk

Management

Investment

Process

Fund


Nu

mb

er

of

Vio

len

t In

cid

en

ts

Security has improved

substantially and violent

incidents have dropped

dramatically since mid-2007.

As is typical in many evolving,

post-war, countries, Iraq still

suffers from random violence.

The Iraq Fund believes the

continued decline of violent

incidents will increase the

willingness of other countries to

invest in Iraq.

Source: Iraq Body Count (accessed June 25 2013)

0

500

1000

1500

2000

2500

3000

3500

Jan04 Nov04 Sep05 Jul06 May07 Mar08 Jan09 Nov09 Sep10 Jul11 May12 Mar13

Civilian Deaths from Violence



Top Countries by Oil Production, 2012 est. Top Countries by Oil Reserves, 2012 est.

Risk

Management

Investment

Process

Fund


Source: Central Intelligence Agency (CIA)

0 50 100 150 200 250 300

S. Arabia

Venezuela

Canada

Iran

Iraq

Kuwait

UAE

Russia

Libya

Nigeria

264.6

209.4

173.6

151.2

150.0

101.5

97.8

60.0

48.1

38.5

0 2000 4000 6000 8000 10000 12000

Russia

S. Arabia

U.S.

Iran

China

Canada

UAE

Mexico

Iraq

Kuwait

10370

10000

9023

4231

4150

3592

3087

2934

2900

2682

Iraq announced its new estimate of national crude oil reserves as 150bn barrels in April, 2013.

Oil Minister Hussain Al-Shahristani said the new figure for the reserves was not final and Iraq

will carry out studies and reveal new numbers every year. In addition, these estimates

exclude oil reserves in the Kurdistan region.



Risk

Management

Investment

Process

Fund


Moving oil Based on awarded

contracts and plans

presented by oil

companies, Iraq’s Oil

Ministry has projected

production to rise from

2.5 mbpd to more than

12 mbpd in seven years.

Pipeline connections to

Turkey and Syria and

construction of new

refineries are part of the

plans to improve the oil

infrastructure. Even if

the projections fall short,

Iraq appears poised to

become one of the

largest oil producing

nations in the world.




Top 10 Countries by GDP Growth (% YoY) 2010-2015

Risk

Management

Investment

Process

Fund


0 5 10 15

Panama

Indonesia

Nigeria

Vietnam

Sri Lanka

Bangladesh

China

India

Iraq

Mongolia

0 5 10

Philippines

Egypt

Indonesia

Bangladesh

Sri Lanka

Vietnam

India

Iraq

Nigeria

Mongolia


0 5 10

Egypt

Sri Lanka

Indonesia

Mongolia

Philippines

Vietnam

Bangladesh

Iraq

India

Nigeria


CITI 3G Index: Global Growth Generators

CITI expects Iraq’s economy to grow at double-digit rates over the next five years, driven by resource extraction,

post-war reconstruction and recovery. Prospects remain bright through 2050.



The Iraq Stock Exchange

The Iraq Stock Exchange began in June 2004 with 15 listed companies and with orders posted on chalk

boards. The ISX now trades 84 companies electronically. Modeled after the New York Stock Exchange,

the ISX has gone to great lengths to modernize its execution and regulatory oversight, and increase

transparency.

June

2004 2008 2012

Operations begin

Market closes briefly due

to violence ISX moves to NASDAQ

OMX electronic trading

Market opened to foreign

investors

AsiaCell raises $1.3 bln on

ISX in biggest IPO in MENA

region since 2008

ISX and Mubasher launch

real-time market data

2014

Zain Telecom readies for

IPO by end of 2013



Risk

Management

Investment

Process

Fund


ISX Market Cap ($bln)

Source: Iraq Stock Exchange

- Market cap appreciation

reflects rising share prices

and corporate earnings

- AsiaCell IPO in 2013 of $1.3

bln doubled mcap, Zain

Telecom is expected to

follow by year-end 2013

- Opportunity for

diversification; ISX is

uncorrelated to global

equities 0.00

2.50

5.00

7.50

10.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1.2013


The Following Is A Confidential Presentation And Is Not Intended For Redistribution.

Risk

Management

Investment

Process

Fund


ISX Trading Volume ($mln)


- Introduction of Nasdaq

OMX electronic trading

system in 2009 boosted

trading volumes and

liquidity

- Iraqi government seated

and 20 years of U.N.

sanctions partially ended

in December 2010; In

2013 Iraq was removed

from Chapter VII.

- Record trading volume in

2013, due largely to

AsiaCell IPO

0

400

800

1200

1600

2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1.2013



Risk

Management

Investment

Process

Fund


Foreign Interests’ Trading Volume ($mln)


- Foreign investors spike

trading volume, following

seating of new Iraqi

government and

removal of U.N. sanctions

in early 2011

- Record foreign

investment flows in 2013

due to AsiaCell IPO

- Foreign investors eyeing

ISX for attractive

valuations and significant

potential gain

0

300

600

900

1200

2009 2010 2011 2012 Q1 2013



Risk

Management

Investment

Process

Fund


Banking Sector Opportunity

Source: Iraq Stock Exchange, Iraqi Securities Commission, Company Reports

Private Bank Assets (US$ mln) - Nearly 40% of ISX market

cap is banking sector

- Private banks post

substantial growth as

confidence is restored in

banking system

- Rapid deposit and loan

growth fuel rising earnings

- Capitalization requirements

fortifying banks

- 31% average annual asset

growth from 2006 to 2012

0

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 2012

2,028

2,807

4,541 5,180

5,960 6,615

10,118



Risk

Management

Investment

Process

Fund




Private Bank Deposits (US$ mln)

- Bank deposits accounted

for more than half of money

supply for first time in 2009

- Record deposit growth

projected as transition

continues from cash-based

economy

- 28% average annual deposit

growth from 2006 to 2012

0

1,625

3,250

4,875

6,500

2006 2007 2008 2009 2010 2011 2012

1,343

1,727

2,857

3,594

4,161

4,599

6,030



Risk

Management

Investment

Process

Fund




Private Bank Lending (US$ mln)

- Central Bank of Iraq slashed

policy rate in 2009, leading

to surge in lending

- Shortage of 2.5 million

homes presents opportunity

for residential financing

- 34% record credit-to-assets

ratio achieved in 2012

- 38% average annual loan

growth from 2006-2012

0

625

1,250

1,875

2,500

2006 2007 2008 2009 2010 2011 2012

305 403

620

1,121

1,678

1,875

2,105



Risk

Management

Investment

Process

Fund




Private Bank Earnings (US$ mln)

- Growth in deposits &

lending naturally leading to

surge in bank earnings

- 45% average revenue

growth from 2007-2011

- Interim reports for 2013 show

private bank earnings rising

at record pace

0

100

200

300

400

2006 2007 2008 2009 2010 2011 2012

39

99

156 143 138

237

366



Risk

Management

Investment

Process

Fund


Hypothetical Sector Allocation of The Iraq Fund Superior, long-term total returns

• Purchase of diversified equity investments

on Iraq Stock Exchange

• Possible investment in emerging

companies positioned to benefit from

Iraq’s redevelopment

• Among the possible industries: oil-related,

infrastructure, agriculture, banking, hospitality and religious tourism

“Iraq today [is] a high-risk, high-return opportunity...a ground floor. Geographically, it is positioned to become one of the most prosperous countries in the world.”

-- Paul Brinkley, U.S. deputy undersecretary of defense, March 2010

Banking

Industry

Telecom

Tourism

Agriculture

Service

Insurance



Risk

Management

Investment

Process

Fund


The Iraq Fund employs a bottom-up approach based on

fundamental quality and value. An extensive market

database was developed using first-hand qualitative and

quantitative data covering ISX-listed companies.

Analyzing investments: Native Arab-speakers on staff

review all company financial reports, parsing them and

using their understanding of Iraqi accounting standards.

Attractive companies and sectors are identified and

researched to determine their long term prospects.

Selecting securities: Companies are selected based on:

superior profitability, healthy balance sheets and

undervalued stock prices. This unique approach means

better investment quality. It allows for market trends and

companies with outstanding management, solid earnings

and bright long-term prospects to be identified early.

Companies with superior profitability

Attractive valuations

Qualitative sector analysis

Excellent long- term prospects

Iraq Fund Investment Process

Sector weighted portfolio

All ISX-listed equities



Risk

Management

Investment

Process

Fund


Iraq Fund Portfolio Performance for

Global Capital’s Previous Maiden Fund * Chart compares portfolio performance of the previously managed Iraq Fund to the average performance of three other Iraq-focused funds and MSCI Emerging & Frontier Markets Index

4.31 3.33

4.36 4

10.03

6.83

2.53

0.55 1.16

8.39

1.51

4.94

10.76

2.85

-2.65

6.94

-2.72 -1.2

5.53

2.83

-3.04 -1.84

-0.79

-9.08

-2.02

1.31 2

6

3.33

2

3.83

0 -0.387

2.88

0 0.383

-10

-5

0

5

10

15

Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11

IRAQ FUND MSCI EFM AVG (3)



Risk

Management

Investment

Process

Fund


Iraq Fund Portfolio Performance

* Chart compares portfolio performance of Iraq Fund, LP to the average performance of the three other Iraq-focused funds and MSCI Emerging & Frontier Markets Index

6.19%

20.32%

65.58%

90.00

100.00

110.00

120.00

130.00

140.00

150.00

160.00

170.00

Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11

IRAQ FUND AVG (3) MSCI EFM



Risk

Management

Investment

Process

Fund


To protect the principal of our investors, the managing

director and portfolio manager of The Iraq Fund will

analyze companies’ fundamentals and invest only in

those deemed to have healthy financials and strong

growth potential.

The Iraq Fund moves to mitigate loss by investing

across asset classes and reacting nimbly to adverse

conditions. Fund managers and the portfolio

manager will evaluate the portfolio continuously and

monitor positions for political and regional risk, as well

as, company and sector risk.

Monitor

Actively analyze country and regional risk

Allocate

Shift portfolio allocation to reduce volatility

Diversify

Diversify among sectors and companies

Iraq Fund Risk Management



Kenneth Kuhn

President and

Managing Director

Kenneth Kuhn is president and managing director of Global Capital Investment Inc.

and founder and managing director of The Iraq Fund, LP. A featured panelist at the

2011 “Global Macro and Geopolitical Risk Conference” in New York City, Mr. Kuhn

has been often quoted as an expert commentator on Iraq’s economic outlook.

His keen perceptions about emerging markets are reflected in the success of his first

hedge fund focusing on Iraq. Launched after more than a year of research by Mr.

Kuhn, the fund outperformed three more established competitors in its first year.

Additionally, Mr. Kuhn is the founder and principal of a state licensed and U.S.

Department of the Treasury registered company specializing in the exchange of foreign currency. He holds a master’s degree from Northern Illinois University.

Ahmad Saleh

Portfolio Manager Ahmad Saleh is the portfolio manager for The Iraq Fund, LP and is responsible for

investment strategy and stock selection.

Drawing on his experience in banking and wealth management, Mr. Saleh founded

the first equity research firm covering the Iraq Stock Exchange. An Arabic speaker

and Iraq native, Mr. Saleh leverages his deep knowledge of the Iraqi financial

markets to guide his stock selection.

He holds a bachelor’s in finance from the John Molson School of Business and is

working towards his CFA designation.



Investment Terms and Partnership Structure

Fund Strategy: Frontier Market Investment: Iraq Focus

Accredited and Qualified Investors Only

Domicile: Delaware LP

Minimum Investment: $1,000,000

High-Water Mark: Yes

Lock-up: 12 Months

Redemptions: Quarterly, with 60 days notice

Management Fee: 2.00% Annually

Performance Fee: 20%, subject to high-water mark

Redemption Fee: 1%

Global Capital Investment Inc. 409 Illinois Ave., Suite 1A Saint Charles, IL 60174 Phone: 630.762.1100

www.theiraqfund.com Email: [email protected]

Contact Information

An 18- to 36-month investment

period is recommended for

participants in The Iraq Fund.



Legal, Administrative, Accounting and Custodial

Legal Counsel: Thompson Hine, LLP

Administrator : Apex Fund Services

US Bank: Cayman Institutional Bank

Iraqi Bank: North Bank

Auditor: EisnerAmper has offered to serve as

auditor; not yet formally engaged

In order to ensure compliance and best practices, the Iraq Fund will employ leading independent

providers of legal counsel, fund administration and custody services.

Global Capital Investment Inc. - 409 Illinois Ave. Suite 1A - Saint Charles, IL 60174 Phone: 630.762.1100 - Email: [email protected] - www.theiraqfund.com



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The Iraq Fund - Presentation- Final 082213

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