The Fund also may invest in Asian countries such as China, India and Pakistan, wherein it may find strong cross linkage with businesses in the Middle East.
Omar M. El-Quqa, Executive Vice President at Global, said that the launch had been inspired by Global's experience in making private equity investments, its regional relationships and its knowledge and understanding of the market, in addition to the significant untapped buyout potential in the region.
"We are currently managing over US$ 1 billion of private equity funds and have strong relations with investor groups in the region. And we are physically present in many of the target countries through our offices in the Middle East, North Africa and Asia."
"Regional businesses are enjoying strong momentum," added El-Quqa, which he commented had been "especially driven by growing M&A activity." This appealing investment environment is further supported, El-Quqa revealed, by the fact that "The companies in the region, traditionally owned by the State or families, have become increasingly receptive to new investors including private equity funds."
He affirmed that there are several other factors that have led Global to launch the Buyout Fund at this time: "The region's exchanges have undergone major correction, which has rationalized valuations of most listed, as well as unlisted, private companies. The companies from the region are increasingly looking for cross border acquisitions and business development synergies with international players. Significant reforms are being carried out in the regional capital markets, with conscious effort by the governments to encourage private entrepreneurship."
Shailesh Dash, Senior Vice President and Head of Private Equity Funds at Global, emphasized that the Global Buyout Fund will look at opportunities to invest in portfolio companies with the objective of participating in or influencing management decisions and thereby enhancing the value of such companies. He believes that there are many companies in the region which can have significant opportunity when properly managed for financial or business restructuring, operating efficiencies or revenue growth.
Dash also noted that "The Fund has been endorsed by Bear Stearns International and JP Morgan Cazenove, who are also distributing the same among institutions in Asia, Europe and North America."
Global has one of the largest private equity team in the MENA region. The team is organized into transaction, due diligence and investment follow-up subgroups. The members of Global's private equity team have diverse sector experience and geographic experience in countries across the MENA region and South Asia, and collectively maintain a broad network of institutional relationships within the regions targeted for investment by the Buyout Fund. Additionally, Global's long financial research capabilities, and extensive due diligence process will definitely come into play.
The private equity team has successfully completed 35 transactions and committed over USD$ 700 million within a span of 16 months for the two Global Opportunistic Funds in the GCC region, the MENA region (including Turkey), India and China.
"Since the corrections seen in the regional stock markets during 2006, the Buyout Fund will allow investors to diversify their portfolios into this alternative asset class and reduce their overall risk while increasing return on investments," Dash followed.
Dash concluded that the Fund would give investors an opportunity to benefit from Middle Eastern private equity investments "which had always remained a closely guarded jewel."
It is worth mentioning that The team of Global Capital Partners is one of the largest private equity groups with successful track record of private equity investments across Kuwait, Qatar, Saudi Arabia, UAE, other Middle East, India and China.
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Global launches largest regional Buyout Fund
- Kuwait: Sunday, March 04 - 2007 at 07:25
- PRESS RELEASE
Capitalizing on its private equity experience, Global Capital Partners Ltd. (wholly owned subsidiary of Global Investment House) launched today the 'Global Buyout Fund L.P.', which will aim to invest in high-potential companies of the Middle East, North Africa and Turkey.
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About J P Morgan CazenoveJPMorgan Cazenove is one of the UK's leading investment banks. Jointly owned by JPMorgan and Cazenove, it combines innovative and impartial advice with a broad range of capabilities and proven execution skills. It is committed to providing its clients with the highest quality of services based on a deep understanding of their needs which has been built up over many years.
Headquartered in London, it has offices in Hong Kong, Beijing, Singapore, Shanghai, Frankfurt, Paris and New York as well as access to JPMorgan's extensive global network. It provides a full range of investment banking services, including financial advice, M&A, investor relations, debt and equity capital markets advice and execution and equity research and distribution. JPMorgan Cazenove is committed to acting as an effective link between providers of capital and its commercial, industrial and financial customers.
About Bear Stearns
Bear, Stearns International Limited (BSIL) is a wholly owned subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). BSIL currently employs more than 1,100 staff in London who serve corporations, institutions, partnerships and governmental entities in the United Kingdom, Europe and the Middle East. BSIL's capabilities include investment banking, institutional equities and fixed income sales, trading and research, derivatives, financial futures, foreign exchange and global clearing. Bear, Stearns International Limited is authorized and regulated by the Financial Services Authority.
Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking, securities trading and brokerage firm. With approximately $66.9 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, securities research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers financing, securities lending, clearing and technology solutions to hedge funds, broker-dealers and investment advisors. Headquartered in New York City, the company has approximately 13,500 employees worldwide.
About Global Capital Partners Ltd.
Global Capital Partners Ltd. is a Cayman Islands exempted company, incorporated in 2007, and is the sole General Partner of Global buyout Fund L.P. The objective of the General Partner is to launch private equity funds and act as a business development company for the acquired portfolio companies. The company is a wholly owned subsidiary of Global Investment House KSCC (Global), and hence, inter-alia, has the advantage of leveraging the international offices of Global across 14 countries in the Middle East and Asia for sourcing proprietary deals. The team of Global Capital Partners is one of the largest private equity groups with successful track record of private equity investments across Kuwait, Qatar, Saudi Arabia, UAE, other Middle East, India and China.
About Global Investment House "Global"
Global Investment House "Global" is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges, with branches and affiliates in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, and Sudan. Global plays an important role in promoting investment opportunities in the Arabian Gulf Peninsula to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global's achievements have been recognized on local, regional, and international levels. The company's current assets under management reached KD2.021billion (USD7.2billion) on December 31, 2006.
For more information about Global, please contact Mishari Al-Mufarreh, Media Relations Executive. Tel: (965) 240-0551 Ext. 659; Fax: (965) 242-0498; P.O. Box: 28807 Safat, 13149 Kuwait.
Posted by Anne-Birte Stensgaard, Senior News EditorSunday, March 04 - 2007 at 07:25 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Mon Apr 30 2007.
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