Abraaj launches USD 500 million Buyout Fund II

Targeting a capitalisation of $500 million, the Fund will have a geographical focus across the GCC countries, the Levant region, and including opportunistically, other countries within the MENA region and the South Asian sub-continent.

Shaikh Abdulrahman Al Turki, chairman of Abraaj Capital, said that the launch of the Buyout Fund II is a significant development not only for Abraaj Capital, but also for the region. The size and target of the Fund is an indication of what the region is about to witness with the rapid increase of both investments and deal flows.

"I am delighted that today we are launching the largest private equity fund in the region. This is the beginning of a great era for the region, the launch of the fund of this size, something that has not been done before in the region, will encourage our industry to look into new opportunities that have not been explored before," he added.

The Abraaj Buyout Fund II will have an investment strategy that is similar to its predecessor the Abraaj Buyout Fund, which was capitalised at $116 million and is largely invested today.

Hussein Nowais, vice chairman of Abraaj Capital, described the target capitalisation of the Fund at $500 million as an important milestone for the firm and a step towards achieving a global asset management footprint.

"Given our successful track record, the strong performance of the GCC markets and availability of excellent assets and a growing variety of asset classes, we see a clear opportunity to invest the targeted $500 million. Commitments in excess of $200 million have already been received from our existing and new investors to the Fund. We have established a reputation in the market of giving our investors superior returns across our funds and we expect to achieve the same level of performance with the Buyout Fund II, which is targeting an IRR of 30 per cent" he said.

Arif Naqvi, CEO of Abraaj Capital, said that private equity investing has caught on with investors in the region, who are sophisticated, savvy and are constantly evaluating alternative investment opportunities to diversify their portfolios.

He said that the Abraaj Buyout Fund II will be primarily acquiring controlling equity positions in stable, mature, profitable businesses that have strong management to support and implement growth strategies that are typical to Abraaj's business.

"Abraaj continues to show its capability and expertise in structuring successful exit strategies that have opened a doorway and laid the foundations for private equity funds to excel in this region. We find the region to be ripe for greater participation of private equity investors and strongly believe that the launch of the Buyout Fund II will further catalyse the growth of our industry by bringing more players and investment vehicles that would ultimately create corporate and institutional efficiencies and enhance the performance of the regional economy. " Naqvi added.

ABRAAJ Capital is amongst the pioneers of Private Equity investments in the Middle East and North Africa (MENA) region. Headquartered in Dubai, the firm has brought together some of the most successful leveraged acquisitions across the Middle East.. The firm has over US$260 million of assets currently under management.