From Mutual Funds to Power Plants: The Nafeez Sarafat Playbook

How one man leveraged financial power, political backing, and corporate connections to reshape Bangladesh’s capital market and beyond.

For years, Chowdhury Nafeez Sarafat was a name synonymous with influence in Bangladesh’s financial circles. Whether in mutual funds, IPOs, or corporate acquisitions, his role was pivotal — and, to many, deeply controversial.

His power base was Race Asset Management, founded through the EBL First Mutual Fund. Over time, the company grew to manage thirteen mutual funds, including ten closed-end ones originally scheduled to mature after a decade. Under Sarafat’s influence, their tenure was extended by ten more years — a move that shaped the future of the country’s asset management industry.

Former BSEC Chairman M Khairul Hossain later admitted he initially rejected the extensions but was compelled to approve them following a directive from Finance Minister Abul Maal Abdul Muhith.

By mid-2024, Race’s assets totaled Tk3,200 crore at cost value and Tk2,350 crore at market value. Critics alleged that Sarafat used these funds for personal and political gain. His connections with Salman F Rahman and Nazrul Islam Majumder were instrumental early on, though they eventually soured after disputes involving Beximco shares.

When his relationship with Rahman broke down, Sarafat turned to Finance Minister AHM Mustafa Kamal and Finance Secretary Abdur Rouf Talukder, securing support for Best Holdings Ltd.’s direct listing. Although initially blocked, approval came later through Professor Shibli Rubayat-Ul-Islam’s BSEC. Placement shares were allegedly distributed to high-ranking officials, including relatives of former IGP Benazir Ahmed, as part of Sarafat’s strategy of influence.

Sarafat’s lobbying prowess also surfaced in the Coppertech Industries IPO, where he allegedly facilitated approvals despite financial discrepancies. The Financial Reporting Council (FRC) and Dhaka Stock Exchange (DSE) were both drawn into the case. Eventually, the audit firm was suspended, but Coppertech still gained listing status after Sarafat reportedly intervened at the highest levels.

Throughout his career, regulatory bodies appeared hesitant to act. Even when inspections into Race were ordered, they were never executed. The BSEC continued extending fund tenures, often citing ministry recommendations.

Sarafat’s empire extended beyond finance. Through Strategic Finance Ltd (SFL), he became Managing Director of Unique Meghnaghat Power, a 584 MW project. When Nebras Power purchased 24% equity for USD 24 million, SFL pocketed more than Tk100 crore in profit.

Under its current leadership, Race Asset Management has shifted focus toward transparency, diversification, and compliance. Independent audits and market reviews have strengthened its credibility, marking a move away from its controversial past.

Yet, Sarafat’s influence remains embedded in the market’s history — a reminder of how one individual’s reach could steer the course of Bangladesh’s financial evolution.