Currently, 39 capital funds in market are being raised by MENA-based fund managers, according to Preqin’s Fund in Market database. These funds are collectively targeting an aggregate $8.7bn in capital commitments. Of these funds currently raising, 21 have had at least one interim close, collecting $1.6bn in capital commitments to date. When broken down by fund type, growth and buyout funds account for the largest proportion of these MENA-based funds in market, making up 33% and 18% of the total respectively. The majority of these funds have a geographic focus on the MENA region.
The average target size of the 39 funds in market being raised by MENA-based fund managers is $223.7mn, with the largest fund on the road seeking $1bn. The two largest capital funds in the group are Millennium Private Equity Financial Institutions and SHUAA Saudi Hospitality Fund I, which are targeting $1bn and $533mn respectively. Three funds – Masah MENA Growth PE Fund I, Barwa Gazprombank Russia Real Estate Fund and Millennium Private Equity General Industrial and Technology Fund – share the position of the third largest fund in market, with all three targeting $500mn in capital commitments.
The buyout fund, Millennium Private Equity Financial Institutions focuses on the financial service industry, investing in the MENA region and specifically targeting the United Arab Emirates. SHUAA Saudi Hospitality Fund I is a real estate fund that aims to develop hotels, apartments and resorts across Saudi Arabia.
Over the last 12 months eight funds raised by MENA-based fund manager have held a final close, collecting aggregate commitments of $1.8bn, with the average final close size amounting to $454mn.