Middle East-Focused Private Equity Fundraising

by Kamarl Simpson

  • 18 Apr 2011
  • PE

Preqin data shows that there are 25 Middle East-focused funds currently on the road seeking aggregate USD 7bn. 40% have already had at least one interim close, with aggregate interim commitments standing at USD 1.7bn. Venture capital vehicles are the most numerous type of fund targeting investment in the Middle East, accounting for 15 of the 25 funds in market and seeking a total of USD 3.5bn.

One of the largest Middle East-focused funds currently in market is the ADCB Macquarie Infrastructure Fund. The infrastructure fund is a joint venture between Macquarie and Abu Dhabi Commercial Bank (ADCB) and is targeting capital commitments of USD 1bn. The fund targets investment in the Middle East and North Africa with a primary focus on the Gulf Cooperation Council region.

Data from Preqin’s Fund in Market product reveals that private equity fund managers based in the Middle East are responsible for raising nearly two-thirds (64%) of the funds currently on the road aiming to invest primarily in the Middle East and more than half of these Middle Eastern fund managers headquartered in the United Arab Emirates. 12% (three) of the managers are based in Europe, with the remaining 24% split evenly between Africa, Australasia and US-based fund managers.

In 2010, three funds with a specific focus on Middle East investment closed having raised USD 1.1bn. The USD 533mn GC Equity Partners II was the largest fund focused on the region to close in 2010. The buyout fund managed by Gulf Capital seeks investment opportunities in the Gulf Cooperation Council region, in the healthcare, oil and gas, education/training, logistics, and power industries.

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