Professional Documents
Culture Documents
The declaration of the G8 of May 2011 pertaining to the Arab Spring states in its rst article: The changes under way in the Middle East and North Africa (MENA) are historic and have the potential to open the door to the kind of transformation that occurred in Central and Eastern Europe after the fall of the Berlin Wall. The aspiration of people for freedom, human rights, democracy, job opportunities, empowerment and dignity, has led them to take control of their own destinies in a growing number of countries in the region. It resonates with and reinforces our common values . Indeed, the wind of change that will embrace the region in the months and years ahead will be momentous and far-reaching. Those countries that have engaged in democratic transitions must resolutely work out economic and social programs that will address the pressing challenges facing their young population viz. unemployment, poverty, and inequitable distribution of income. The expectations of their youth are high, and unless a level of prosperity, or at least anticipation thereof, is achieved the prospect for democratic transition and consolidation may be in jeopardy. In order to accelerate economic growth they must resolutely embark on ambitious investment programs particularly in the labour intensive sectors of the economy. They must also work out intelligent schemes to promote private initiatives and professionalize the business environment in their respective markets. One of the virtues of democracy, if properly pursued, is that it promotes enhanced conditions for private entrepreneurship. In particular, Private Equity can and should play a crucial role in the MENA region as it contributes in the professionalization of the investment climate, the development of SMEs and the acceleration of job creation. Bar a few exceptions Private Equity remains nascent in the MENA region. The industry remains, by and large, in its infancy throughout the region. The potential is therefore tremendous not only in the traditional areas of private equity such as venture, development or transmission capital but also in other segments of professional investments (e.g. Industry-specic investment funds). The promotion of Private Equity in MENA will require setting up proper regulatory, legal, judicial and scal frameworks while enhancing human capital. It stands a better chance to prosper in those markets where stock exchanges are strong so as to facilitate the formulation and execution of exit strategies. With the right environment and support, private equity and venture capital can help facilitate a ourishing business environment, and will also ultimately contribute in the emergence of a new generation of highly professional and motivated entrepreneurs in the country. Jaloul Ayed Minister of Finance Tunisia
SPECIAL THANKS
Special thanks go to our sponsors. Without their support, the development of this report would not be possible.
REPORT SPONSORS:
Abraaj Capital Amwal AlKhaleej Eastgate Capital Group Global Capital Management NBK Capital Qatar First Investment Bank Swicorp Tuninvest
KPMG Team: Zawya Team: Ali Arab and Lara Ghibril Thomas Schellen Bureau van Dijk: Paul Costers and Amy Morris
table of ContentS
01. iMpoRtant notice
1.1 1.2 1.3 BaSiS of pRepaRation DEfinitions & AssuMptions DAtA filtEring
04
02. 03.
07 10
04.
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ABout thE MEnA privAtE Equity aSSociation sponsor profilEs MEMBErs DirEctory privAtE Equity & vEnturE cApitAl firMs in Mena
43 45 56 58
impoRtant notiCe
important notice
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impoRtant notiCe
1.1 BAsis of prEpArAtion
This report has been prepared based on data provided by the MENA Private Equity Association, and sourced from the Zawya Private Equity Monitor. Historical data has been updated from that used in the 2009 GVCA report to include full year results for 2010 and to reflect increased disclosure of information in the market. KPMG member firms have not initiated any primary research in relation to this draft report and have not sought to establish or confirm the reliability of the data provided by the MENA Private Equity Association and Zawya. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is or will continue to be accurate. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. In analysing and determining the parameters of available data, it has been necessary to apply certain criteria, the most significant of which are as follows:
Private equity has been defined to include houses that have a General Partner / Limited Partner structure, investment companies and quasi-governmental entities that are run by, and operate in the same way as, a private equity house. Venture capital for the purpose of this report is defined as a fund specifically dedicated to venture capital investments. This includes funds by Venture Capital Firms, and Venture Funds under Private Equity Firms. This Association is in the process of developing a definition to define Venture Capital in MENA. Accordingly, future references to Venture Capital may change. Funds managed from MENA but whose focus is to invest solely outside the region are excluded from the fundraising and investment totals. MENA includes Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE, and Yemen. Investment size represents the total investment (both the debt and equity portions). However fund size only considers equity invested, as we have no visibility on debt exposure by funds. The fund raising totals are the amounts closed/committed for fund raising funds, closed funds, investing funds, fully vested funds and liquidated funds. Given the relative nascent state of the industry in MENA, exits have been defined to include partial exits, although simple dilutions have not been included.
important notice
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Announced: Official launch of funds which are yet to commence fund raising. Rumoured: Funds expected to announce their intention to commence fund raising. fund raising: Funds which have been announced and are in the process of raising capital. investing: Funds which have closed and are actively seeking and/or making investments. fully vested: Funds that have invested all capital raised. Some of the investments may have divested in this stage but not all. liquidation: Funds which have divested all investments and have fulfilled all obligations to shareholders.
intRoduCtoRy meSSageS
Introductory Message
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INTRODUCTORY MESSAGE
The region is increasing in its dynamism. Its youth have led over the past several months (mostly) positive and peaceful political changes that have radically transformed many countries in the region. The same energized youthful population is also taking control of their economic destiny as well with a surge in entrepreneurship, startups, and venture capital activity. The number of VC deals last year increased over the past two years, and continued growth in this area is expected. Articial regional boundaries are also starting to slowly fade away after decades of political fragmentation. Social connectivity and a realization of the need for unity are translating into political and business integration at both grass root and governmental levels. Since 2005, in the wake of the economic boom, increasing cross-border ow of labor, trade, and capital have brought many of the people in the region closer. And the recent political events have proved, beyond doubt, that such integration has progressed further than what most of us have realized: a political event Tunisia has snowballed across a region that shares similar values, challenges, and aspirations. The announcement of expanding the Gulf Cooperation Council to include Morocco and Jordan is another example of the materialization of regional integration. The birth and evolution of the MENA Private Equity Association (MPEA) epitomize the positive shifts in the region. During its rst year, it proved to be an active and constructive facilitator amongst industry participants. It was able to attract 21 members from across the region. It was also able to bridge the gap between the entrepreneurial venture capitalists and the sober private equiteers, allowing both factions to use it as a platform for their activities. It was able to bring in service providers and engage them, without diluting its mission and membership base. It was constructed to be a loose association linked by technology without the rigidity of boards and committees. These trends will have long-term positive impact on private equity activity. An enlarged common market inhabited by a more dynamic population means better investment opportunities. The private equity industry may be pausing to reect on these changes of 2011. However, it is a pause to see how to clutch on the emerging opportunities whilst avoiding short-term risks. The 2010 Annual Report Steering Committee: Ali Arab, Zawya Fadi Arbid, Amwal AlKhaleej Purshotam Ramchandani, Abraaj Capital Helmut Schuehsler, TVM Capital Imad Ghandour, Cedar Bridge Partners Karim Ben Salah, Swicorp
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Dale Gregory Partner Tel: +971 (0) 4 403 0300; Email: dgregory1@kpmg.com
KPMG is a global network of professional firms operating in 150 countries with over 138,000 people working in member firms around the world. KPMG in the UAE was established in 1974 and has grown to 900 professional staff led by 30 Partners, across 8 offices in the country. We work closely with our colleagues in offices throughout the MENA region and across the world.
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* We have presented the 2010 total transaction value above both including and excluding Abraajs acquisition of Network International for approximately $540 million. We have excluded this transaction from the remaining analysis in the report in order to remove the potential distortionary impact of this major transaction. Note 2007 excludes the distortionary impact of the $2billion investment in Egyptian Fertilizers Company.
Source: Zawya Private Equity Monitor The report is based on data gathered prior to the pro-democracy events that were triggered in some countries in the region, and the analysis thereafter will not attempt to predict the impact, positive or negative, of such events. Fund raising activity in 2010 increased slightly compared to 2009, however, activity remains below pre-crisis levels. Funds remained focused on their portfolio companies and were unwilling or unable to find new opportunities to deploy their abundant dry powder. Most funds seeking to invest attributed the reduced investment activity to a mismatch between sellers and investors price expectations: sellers expectations are uplifted by the buoyant economic activity in many regional economies; whilst buyers, learning from the lessons of the recent crisis, insist that prices should be discounted to reflect the inherent risks.
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2010 also saw significant growth in the venture capital industry. Four separate venture or growth capital funds successfully raised $340 million (representing an increase from zero funds raised in 2009 and approximately $129 million in 2008). For the first time, the proportion to the total was significant: it represented 26 percent of the total funds raised and approximately 50 percent of investments completed. As in previous years, the core regional economies of Saudi Arabia, Turkey, Egypt, and UAE were the destination of the majority of the investment. In response to the economic environment, fund managers have continued to focus on investing in defensive and non-cyclical sectors such as healthcare and power and utilities. In line with this trend, we are seeing more focused investment strategies adopted by some fund managers.
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3.2 funDs
3.2.1 funDs rAisED to DAtE
Source: Zawya Private Equity Monitor Raising capital continued to be a challenge for fund managers in 2010. However, 2010 did see a marginal increase in total value of funds raised from $1.1 billion in 2009 to $1.3 billion, suggesting that the tide may have turned and confidence may be returning to the investor community. 2010 saw eight funds successfully raise capital totaling $1.3 billion. In contrast to the industry peak in 2007 and 2008, the comparatively low number of funds successfully raising capital means the region has become a less competitive environment for fund managers and potential investors. This is also mirrored in the investment arena with the general feedback received from fund managers suggesting a significant increase in the portion of proprietary transactions and less reliance on auctions.
Source: Zawya Private Equity Monitor Cumulative funds under management grew to $22.3 billion in 2010. The table following details which funds successfully raised capital during 2010.
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Fund Manager
EVI Capital Partners EVI Capital Partners Masdar Venture Capital, DB Climate Change Advisors Abraaj Capital
Investment Focus
Buy out Mezzanin Capital Energy and Power Growth Capital
Year of Announcement
2010 2010 2010 2010
ITS (USD m)
400 400 n.a 500
Total
2,003
1,302
Source: Zawya Private Equity Monitor Of the new funds announced in 2010, seven were successful in raising capital totalling $1.2 billion while one fund, lion).
specic investment focus such as Energy and Power. The sizes of these funds typically range between $100 million and $350 million. Of the seven funds announced and closed in 2010, the amounts raised represented just 67% of the total Intended that a further 10 funds with a total ITS of $4 billion were announced in 2010 but did not yet make a rst close. based in South Africa. The two funds covers Africa and MENA regions, but they, given the posture of their manager, are more inclined towards African investments.
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Source: Zawya Private Equity Monitor As discussed previously, there has been a shift away from large funds, such as the large buyout funds that were so prevalent during the market peak in 2007 and 2008, towards smaller, more focused funds. All of the funds which were successfully launched and closed in 2010 were less than $350 million in size. By contrast, 15 funds exceeding $500 million in size were successfully raised during 2007 and 2008.
Source: Zawya Private Equity Monitor Some sectoral funds emerged in 2009 and 2010 in healthcare, power and energy. This together with the rise of Venture Capital in the region has created a shift away from the traditional general buyout funds which dominated the fund landscape prior to 2009.
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Source: Zawya Private Equity Monitor The above graph and the table following detail the major announced funds which are yet to make a rst close. 23 funds announced prior to 2009 are yet to make a close. It is becoming increasingly unlikely that all of these funds will ever reach a successful closure. We note that 2010 saw a signicant increase in the funds announced which are yet to make a close, including two
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Fund Name
Mahaseel Agriculture Investment Fund
Investment Focus
Growth Capital
Regional Focus
Egypt, Sudan
Year of Announcement
2010
ITS (USD m)
1,000
Announced Fund Raising Announced Announced Fund Raising Fund Raising Fund Raising Fund Raising Investing Announced Announced Fund Raising Fund Raising Other
KIPCO Opportunity Fund EMP Energy Fund Amwal Fund III Al Masah MENA Private Equity Fund Citadel Capital Joint Investment Fund MerchantBridge- UBS Private Equity Fund Invest AD Private Equity Partners II L.P. MENA Private Equity Fund Alimtiaz Investment Fund Pharos Fund Pharos Miro Timber Fund Intaj Capital II The Marshall Fund Various Miro Agriculture
Buyout Buyout Growth Capital Buyout Buyout Buyout Growth Capital Balanced Fund Buyout Buyout Buyout Growth Capital Growth Capital Various
Levant, MENA MENA, GCC MENA, Saudi Arabia MENA MENA MENA MENA GCC MENA Africa Africa MENA, Turkey Iraq Various
2010 2007 2010 2009 2008 2008 2009 2008 2007 2010 2010 2010 2008 Various
1,000 1,000 500 500 500 500 400 400 354 350 350 300 300 1,988
Total
9,442
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Source: Zawya Private Equity Monitor The total size of all active funds in the market in 2010 (both raised and yet to be raised) was approximately $33 billion, of which $22 billion has been raised. Of the 120 or so active funds in the market in 2010, 37 have been announced but are yet to make a close (with a total ITS of $9.4 billion). Of these 37 funds, 23, with a total ITS of $4 billion, were announced prior to 2009. Again, it is becoming increasingly unlikely that all of these funds will reach a successful closure.
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3.3 INVESTMENTS
3.3.1 INFORMATION LIMITATIONS
Furthermore, in some cases where investments are publically announced, private equity houses have not revealed 42 for analysis purposes based on available market intelligence.
the fund.
Source: Zawya Private Equity Monitor 2010 saw a further decline in the number and value of investments, although the last quarter of 2010 showed an
companies.
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nancial crisis.
TOP 10 TRANSA
Fund Greater than $10 m
UAE UAE UAE Development LLC (Newton Schools) Pro Vita UAE
BY VALUE
Region Sector (USD m)
>10 >10 >10 Health Care Health Care Media Agriculture >10 >10 >10 <10 <10 <10 Telco Agriculture <10 <10
Financial Services
United Kingdom Teshkeel Media Group Kuwait Egypt UAE Egypt United Kingdom Sukuk Wadi Holdings Egypt
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The average size of an investment continued to decline in 2010 to $11 million from $36 million in 2009. Of the known transaction values, the vast majority were less than $20 million. While limited access to and the increased cost of nancial leverage continues to restrict the ability of funds to complete large transactions, the private equity industry is showing an increasing appetite for investing into SMEs and venture capital businesses.
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widen the gap further. life of the fund.
Source: Zawya Private Equity Monitor When analysing the level of deployed funds in the MENA region, it is important to reiterate that a signicant por-
We also note that the level of available funds largely depends on the fund managers ability to call on the amount of funds raised. Nevertheless, it appears as though the fund raising cycle is running well ahead of the deployment have grown to several billion dollars since 2006.)
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46%
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Source: Zawya Private Equity Monitor Turkey, in line with Egypt, enjoys the benefits of a large and fast-growing population, strong local demand, and proven resilience to the global financial crisis. However, political uncertainty around the region continues to have a short-term negative impact on investor sentiment. While the portion of investments in Saudi Arabia increased year on year from 2007 to 2009, only one private equity transaction was completed in the country in 2010. However, given the size of the economy in Saudi Arabia (the largest economy in terms of GDP in the Middle East), the country is expected to benefit from relatively significant private equity investment in the years to come. The UAE continues to be a popular destination for fund managers and, given the size and dynamic nature of the economy, it is expected to remain amongst the top destinations for years to come.
Source: Zawya Private Equity Monitor Based on investment value, the most attractive sectors in 2010 were the healthcare and power and utilities sectors which collectively accounted for 57% of the total transaction value ($84 million of the total $148 million).
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Source: Zawya Private Equity Monitor The proportion of investments attributable to sectors such as healthcare and power and utilities has increased in recent years as investment strategies have increasingly focused on those non-cyclical, resilient sectors. However, as expected, sectors most heavily impacted by the global financial crisis such as real estate, construction and financial services have fallen behind. The healthcare sector is one sector in particular which saw a significant increase in the proportion of investment value in 2010. The healthcare sector is vast and made up of many different industries from pharmaceuticals to hospitals. This sector continued to benefit not only from a growing population in the MENA region, but also a growing middle class with increasing ability to invest in healthcare services. It is also generally considered to be a sector relatively unaffected by the economic downturn and, in some countries in the region, benefits from an increasing scope of obligatory employer health insurance. The power and utilities sector continued to see a good level of deal activity in 2010. This is primarily owing to the demographic and economic prospects coupled with government initiatives for major energy investments such as renewables. Similar to the healthcare sector, the increase in population will result in increased demand for power and electricity in the region. Privatisation projects also provide investment opportunities for the regions numerous infrastructure funds.
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3.7 Exits
Source: Zawya Private Equity Monitor Similar to the data limitations mentioned previously in relation to investments, a significant portion of private equity divestments are either unannounced or, where the divestment is announced, in many cases the value is undisclosed. As a result, we have focused on analysing the number of divestments as opposed to the total value. 2009 saw a significant decline in the number of divestments compared to prior years. This was largely driven by a decrease in multiples together with a lack of stock market liquidity. However, we note that 2010 saw the number of exits increase to ten from six in 2009. Private to private sales were the most popular exit strategy as IPOs continued to be challenging.
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METHODOLOGY
MENA region (including the top 10 PE houses based on funds under management). The rms surveyed have investments in a breadth of industries with a wide geographical reach.
FUTURE OUTLOOK
managers in the region. Consistent with what is seen in the 2010 data when the average size of funds raised was approximately $160 million, 71 percent of the respondents believe that the average size of the funds raised in 2011 will be less than $250 million. Many respondents believe that the notable resurgence in growth capital and increased focus on venture areas of focus will prove to be the most popular.
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Of the 25 private equity firms in the MENA region who took part in the survey, six were established in the last two years (with 16 established in the last 5 years). This reflects the nascent nature of the industry in the region compared to more developed markets such as the US and European markets. It is interesting that three of the respondents were set up in the last year, despite the challenging environment. Who owns the fund management company?
Of the respondents, 71 percent stated that management hold, at least, some ownership in the fund management company with 38% majority owned by management.
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Given the relatively young age of the private equity industry in the region, it is not surprising to see the vast majority of respondents (67 percent) having managed just one or two funds to date. What is the total value of assets under management?
54 percent of responding firms have less than $500 million worth of assets under management.
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Given the relatively young age of the private equity industry in the region, it is not surprising to see the vast majority of respondents (67 percent) having managed just one or two funds to date.
4.2.2 outlook
What is most important for a pE firm to win a deal?
As with all jurisdictions, the existence of a good network is seen by a large portion of respondents (37 percent) as the most important attribute required to successfully complete acquisitions. However, management and operational expertise together with an ability to be flexible as to the terms of the acquisition are considered by many to be the most important.
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Based on the responses from the survey, the general sentiment held by fund managers is that there is still a disparity or expectation gap between sellers and investors in relation to the valuation of investments. The majority of respondents believe multiples are still too high. What led to the recent decline in deal numbers in 2010?
One of the main reasons underlying the lack of deal activity was the lack of alignment between buyers and sellers around valuation. Another main reason was a lack of leverage, and for 25% of GPs, LPs not being able to meet commitments was a factor.
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pArticipAnts WErE AskED to ExprEss thEir opinion ABout thE futurE of privAtE Equity in thE MEnA rEgion.
Do you expect the economic situation to: (improve/Decline/status quo/unclear)?
Respondents were fairly optimistic with 54 percent believing the economic situation will improve and only 4 percent believing that the economic situation will decline. What will be your target irr in 2011?
In line with the responses from the survey last year, 63 percent of fund managers are targeting an IRR between 20% and 29% (compared to 64 percent from the 2009 survey). Although the number of exits is expected to increase over the next two years as fund managers seek to realise a return from their investments, any further delay may make it difficult for private equity firms to achieve their target IRRs.
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While IPOs continue to be seen as challenging, trade sales are considered to be the most attractive exit strategy according to 75 percent of respondents (an increase from 64 percent of respondents in our last survey). It is interesting to note that just 13 percent of respondents believe that sales to other private equity firms will be the most attractive exit option in 2011, suggesting that the secondary market is still not as developed as it is in other regions.
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The expectation of the vast majority of respondents is for deal activity to remain relatively quiet in 2011. What types of deals are expected to take place in 2011?
As previously discussed, there has been a significant increase in the portion of growth and venture capital investments made by private equity firms in the region in 2010. In line with the opportunity set in the market, most GPs expect growth capital investments to continue to be popular in 2011.
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The largest portion of respondents (46 percent) believe that the average deal size in 2011 will be between $20 million and $40 million. This represents a marginal increase versus the actual average deal size in 2010 of approximately $11 million (based on the available transaction values). how many funds do you expect to be launched/raised in 2011?
Despite eight funds successfully raising capital in 2010, the majority of respondents believe that fewer than five funds will successfully raise capital in 2011.
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in your opinion, what will be the main source of funds for new funds launched in 2011?
The majority of respondents (63 percent) expect funds to come from within the region from institutional investors, high net wealth individuals and Sovereign Wealth Funds. However, we note that 29 percent expect international investors to be the main source of new funds. This means that PE Houses perceive international institutional investors as the second most promising financing source in 2011 after regional institutional investors and suggests an underlying perception that international investors are seeing value and seeking opportunities to invest in the region. in your opinion, what will be the holding period of investments completed by pE firms?
58 percent of respondents believe that firms will hold onto investments for more than four years which suggests the traditional investment period may be increasing. We note, however, that the global economic downturn has seen private equity firms delay exits in order to maximise returns and, therefore, this may be a short-term response.
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Half of the respondents believe that deal activity will continue to be slow with fewer than five exits expected in 2011. in 2011
While 75 percent of respondents express their confidence that LPs will be able to meet their expectations in 2011, this is despite an expectation that deal values will not come down.
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What are the main challenges in 2011 for MEnA private Equity industry?
40 percent of respondents believe that at lack of quality investment opportunities and the prevalence of high valuations will be the major challenges to the industry in the MENA region. What is the most important role of pE firms in their portfolio companies?
PE firms themselves see it as their most important roles to provide both operational and strategic planning advice and support to their portfolio companies. This is a departure from the 2009 survey in which 32 percent of respondents named providing financial advice and support as the most important role.
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in 2011
If respondents were to launch a new fund, growth capital would be the most attractive investment focus for 46 percent of them (which would represent an increase from the 25 percent of actual funds raised in 2010 which had a growth and venture capital focus). In terms of target markets, the majority of fund managers expect to market a new fund to predominantly regional investors. In correlation to the PE houses expectations on likely sources of new funds, regional institutional investors and international institutional investors are named by 58 percent as target markets. in your opinion, what will be type of funds raised in 2011?
There has been a notable resurgence in growth capital and increased focus on venture capital over the last two years. The preference for growth and venture capital over the buy-out model reflects the opportunities in this particular space. Infrastructure funds are also expected to be a relatively popular option going forward as the industry hopes to capitalise on the significant infrastructure expenditure and privatization programmes planned in the coming years.
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The GCC, Jordan, Egypt and North Africa are specific regions of focus for the respondents going forward. Reasons frequently cited for PE investor interest in those markets include the large population growth, growing middle class and the level of anticipated government spending. However, we note that the survey was completed prior to the recent developments in the political situation in the region and therefore may not necessarily capture the current sentiment of investors. We also note that Lebanon saw an increase in deal activity in 2010 and, according to the respondents to the survey, remains an attractive market going forward.
The focus in 2010 was clearly on defensive sectors such as healthcare which are seen to offer non-cyclical low risk income streams. From the responses to our survey, this focus on defensive sectors continues to be a popular investment strategy going forward.
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While it is expected that margins, sales and profits would be impacted by the global recession, it is interesting that approximately one quarter of respondents said that the economic downturn had no effect on their portfolio companies. We do note, however, that a number of responding fund managers have had to reassess their strategies with 13 percent of respondents having delayed or cancelled new expansion or investment plans and 8 percent having delayed IPOs.
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www.menapea.com
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SponSoR pRofileS
Sponsors profiles
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Zawya
Over 800,000 professionals from around the world, rely on Zawya to find and connect to the right investment opportunities in the Middle East and North Africa region. Backed by our team of in-house private equity and sovereign wealth fund analysts, Zawyas PE solutions let you shape the right private equity strategy and stay ahead of regional SWF developments. Our comprehensive range of solutions provides a wide variety of unique online content, features and tools, including: Zawyas Private Equity Monitor, which empowers PE professionals with the most comprehensive coverage of the asset class, including unbiased research, in-depth analysis, and the latest news and intelligence. It allows you to gain sharp insight into private equity fund performance by comparing against similar funds, identifying potential minority interest opportunities, as well as examining the latest transactions, rates, sizes, and IRRs. Members can also determine performance trends, compare the values of entry and exit deals, as well as gauge investor appetite by reviewing the areas of funds being raised, closing sizes, sectors, and countries of investment. As IPOs are a popular exit strategy for Private Equity Managers in the region, the IPO Monitor brings together historical analysis, activity monitoring, and a pipeline of deals for the IPO asset class. Strengthening members understanding the industry & market appetites, and keeping track of what lies ahead in Corporate Arabias quest to go public. Additionally, Zawya members can review portfolio details, identify where the bigger players are investing, and gain clear insight on the trends and behaviors of the regions Sovereign Wealth Funds through our dedicated coverage of SWF activity. Zawyas Corporate Monitor service, the cornerstone of our solutions, combines the names and contact details of 120,000+ senior officers with a comprehensive database of over 14,000 public and private companies based in the Middle East. Members can build customized company lists, as well as compare and contrast company profiles by sector, market size, and ownership. Similarly, third-party research provided in the Research Monitor offers greater understanding of the overall state of the target companys market, sector, and macro-economic context. With a team of on-the-ground journalists stationed throughout the region, Zawya Dow Jones Live News, an exclusive partnership with Dow Jones Newswires, delivers unique and insightful stories to help you better identify, assess and connect to the right finance and investment opportunities in the Middle East. In addition, more than 200 regional and international news sources are aggregated by our in-house editorial team, offering maximum exposure and clarity on the asset class. The Zawya Network (ZN), our exclusive private network for premium members, offers users the ability to quickly connect, engage, and transact with like-minded professionals. Forge valuable relationships, engage in variety of discussions, identify new oportunities, and tap in to the knowledge and experience of the regional and international investment community.
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Sponsors profiles
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abRaaj Capital
Abraaj Capital is the leading alternative asset management group in the Middle East, North Africa and South Asia (MENASA). Since inception in 2002, we have raised over US$ 7 billion and distributed almost US$ 3 billion to our investors. Based in Dubai, the Abraaj Group operates nine additional offices in Amman, Beirut, Cairo, Istanbul, Karachi, Mumbai, Ramallah, Riyadh and Singapore. The group has made more than 40 investments in 11 countries across the MENASA region and has achieved 21 exits. More than 70 world-class investment and operating professionals work for the group. Abraaj Capital Funds have holdings in 30 companies, including some of the regions most prominent - such as Air Arabia, the regions leading low-cost carrier; Acibadem Healthcare Group, Turkeys leading privately owned hospital operator; and Al Borg Laboratories, the Middle Easts biggest privately owned medical-testing laboratory company. Abraaj Capital has won many regional and international awards, including six consecutive years as Middle Eastern Private Equity Firm of the Year from London-based Private Equity International. Abraaj Capital was awarded the ranking of top private equity firm in emerging markets worldwide from Private Equity International in 2011. Abraaj Capital Ltd., a member of the Abraaj Group, is licensed by the Dubai Financial Services Authority. The group is also an associate member of the European Venture Capital Association.
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Sponsors profiles
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amwal alkhaleej
Amwal AlKhaleej is a leading regional private equity firm which started its operations in 2005 and that has approximately USD 700 million of assets under management. It is the first and only private equity firm to be headquartered in Riyadh, Saudi Arabia. Amwal AlKhaleej also operates in Cairo and Dubai. The three-office presence staffed with local and on-the-ground experienced investment professionals provides the firm with local origination and execution capabilities. Its founders and management team also include some of the most well-known merchant names and investment professionals in the MENA region. Amwal AlKhaleej is focused on delivering extraordinary results that are consistent, absolute, and deliver market-outperforming returns. The firm emphasizes ethics and transparency as it unlocks the long-term potential of its investments. While open to opportunities across the region, Amwal AlKhaleej focuses on sectors where it can create exceptional value and partners with regional companies that have strong, committed management teams seeking growth. Amwal AlKhaleej specializes in taking influential minority and majority stakes in growing companies across sectors in the MENA region. It has investments in several high calibre companies including Rowad Schools, Gulf Insulation Group, Maritime Industrial Services, Samay Hills, Arab Cotton Ginning, Al-Tayyar Travel Group, Dubai Contracting Group, Right Angle Media and Contact Cars. The firms indigenous investment team is composed of internationally trained local talent that has a thorough understanding of the regions business, cultural, legal and social landscapes. They also have a proven track-record for delivering high value returns, strategic growth and management support with integrity. In addition, the firm is committed to thought leadership. Working with various academics, practitioners, and industry experts, it regularly contributes to a wide range of white papers and articles that reflect its perspective on private equity in the Middle East, and contributes to the intellectual capital of the industry. Amwal AlKhaleej offers an Absolute Advantage to its partners by creating superior results that have a sweeping impact on businesses. Through teamwork and a shared vision, it gives businesses a unique advantage by designing, supporting and deploying initiatives that foster long-term value creation for its investee companies and all stakeholders. For more information please visit www.amwalalkhaleej.com
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nbk Capital
Established in 2005, NBK Capital focuses on offering a diversified range of innovative financial products and services to clients. With a highly professional team of over 170 professionals leveraging world-class experience and expertise of investment, NBK Capital delivers creative financial solutions through its four divisions Alternative Investments, Asset Management, Brokerage & Research, and Investment Banking. NBK Capital has advised on over USD 7.4 billion in financing transactions and USD 2.5 billion in M&A transactions during the past two years. The companys assets under management currently stand at just over USD 6.5 billion across regional and international funds. Innovative products, objective research, creative thinking, timely implementation and excellence in service have seen NBK Capital being recognized as Best Investment Bank in the Middle East for 2009 by The Banker, and as Best Investment Bank in Kuwait for 2009 by Global Finance and for 2009 and 2010 by Euromoney. As the investment banking subsidiary of National Bank of Kuwait (NBK), the highest-rated bank in the Middle East, NBK Capital combines the strengths, resources and global network of one of the largest and oldest financial institutions in the country with best-in-class investment structuring and execution, on a broad array of financial strategies, to consistently deliver integrated value added solutions. Operating regionally from Kuwait, Dubai, Istanbul and Cairo, NBK Capital prides itself on a reach and scale that is global, a focus that is regional and a service level that always remains personal.
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Sponsors profiles
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Sponsors profiles
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SwiCoRp
Swicorp is a leading corporate finance advisory, private equity and principal investment firm with a specific regional focus on the Middle East and North Africa (MENA) region. Founded in 1987 and licensed by the Capital Market Authority of the Kingdom of Saudi Arabia, and the Dubai Financial Service Authority of the United Arab Emirates, Swicorp has an extensive track record of pioneering M&A and Advisory transactions across the MENA region over the last 20 years. Headquartered in Riyadh with regional offices in Jeddah, Geneva, Tunis, Dubai and Algiers, the firm has over 100 employees across its offices and activities, including 30 private equity professionals from both within and outside the region. Since the launch of its private equity activities in 2004, Swicorp has established itself among the leading private equity managers in the MENA region, with nearly US$1.4 billion currently under management across two separate investment programs, including Intaj Capital and Swicorp Joussour. Intaj Capital is a pan-MENA focused private equity fund investing in companies operating in sectors driven directly or indirectly by growth in consumer demand. Sectors include consumer goods, retail, food and beverage, media and communications, consumer financial services, healthcare and consumer-facing construction materials, among others. Intaj pursues two main investment strategies for building a platform of value creation in its portfolio companies: growth and buy & build investments. Intaj Capital I, the first fund launched in 2005, invested US$187 million, US$290 million including co-investments from limited partners, in eight investments across seven countries, well diversified in terms of both geographic coverage and sectors. Intaj Capital II, which represents the second private equity vehicle of the Intaj franchise, had a first closing in September 2010 with commitments from leading international institutional LPs. Joussour was founded in 2005 with US$1 billion in capital commitments. Joussour focuses on large-scale investments in the energy sector, petrochemicals and ancillary businesses to the petrochemical industry, and energy-intensive sectors, through greenfields and joint ventures with international partners or buy-out/relocation of international players in the sector.
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Sponsors profiles
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tuninveSt-afRiCinveSt
Tuninvest-AfricInvest Group was founded in 1994 and is part of a full fledged investment boutique, Integra Partners (www.integra-partners.com) which offers in addition to Private Equity: Brokerage, Asset Management and Corporate Finance services. Tuninvest-AfricInvest Group is today a leading private equity firms in North and sub-Saharan Africa with over $550 million of assets under management across 11 PE funds and sponsored by prestigious DFIs, private and institutional investors. The covered and targeted region evolved during the life of the Group from Tunisia for the first generation of funds with relatively small investments, to the Maghreb region (Maghreb Private Equity Funds I & II) and Sub-Saharan Africa (AfricInvest Funds I & II and AfricInvest Financial Sector Fund) with larger investments. The Group is now launching its third generation of Funds with the initiation of Maghreb Private Equity Fund III, a new North African Initiative. TuninvestAfricInvest Group relies on a team of 35 highly skilled investment professionals with over 120 years of cumulative PE experience, operating out of 6 offices (Tunis, Casablanca, Algiers, Lagos, Abidjan and Nairobi). The Group has made 90 investments across several sectors and realized over 40 exits generating above market IRRs. The Group has made significant contribution to the economic development of its target countries through the growth and profitability achieved by its portfolio companies. The Group is the co-founder of the African Venture Capital Association (www.avcanet. com) and a member of the Euromed Capital Forum (www.euromed-capital.com).
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Sponsors profiles
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exeCutive
Executive is a monthly business magazine that offers its readers in-depth and forward thinking analysis, solid reporting and punchy opinion on Middle East and North Africas commerce, economy and finance as well as regular industry surveys, regional market data and global economic trends. Since its launch in 1998, Executives passion for business, its inside access and uncanny foresight has earned it the highest plaudits, where its readers choose it for its unbiased editorial line and comprehensive analysis. From Morocco to Iraq, Executive has a solid network of the best business and economic analysts, experts, and reporters to provide what is arguably the most authoritative business writing in the Middle East. For more information, please visit www.executive-magazine.com <http://www.executive-magazine.com/> or call us on 00 961 1 611696
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Annual Report
Abraaj Capital
Dubai, UAE Egypt, Jordan, KSA, Lebanon, Pakistan, Singapore, Turkey +971 4 5064400 info@abraaj.com www.abraaj.com
Swicorp
Riyadh, KSA Algeria,Tunisia, UAE Switzerland +966 1 211 0737 info@swicorp.com www.swicorp.com
Amwal AlKhaleej
Riyadh, KSA Egypt, UAE +966 1 216 4666 riyadh@amwalalkhaleej.com www.amwalalkhaleej.com
Gulf Capital
Abu Dhabi, UAE +971 2 671 6060 info@gulfcapital.com www.gulfcapital.com
TunInvestAfricInvest Group
Tunis, Tunisia Algeria, Ivory Coast, Kenya, Morocco, Nigeria +21671189800 contact@tuninvest.com www.tuninvest.com
Investcorp Bank
Manama, Bahrain UK, USA +973 1 753 2000 www.investcorp.com
ReAya Holding
Jeddah, KSA +966 2 6676777 info@reayaholding.com www.reayaholding.com
TVM Capital
Dubai, UAE Germany, USA schuehsler@tvm-capital.com www.tvm-capital.ae
Citadel Capital
Cairo, Egypt Algeria, Kenya +202 2 7914440 smurphy@citadelcapital.com www.citadelcapital.com
Malaz Capital
Riyadh, KSA +966 1 4601644 info@malazcapital.com www.malazcapital.com
Saffar
Dubai, UAE +971 4 3735777 info@saar-capital.com www.saar .com
NBK Capital
Kuwait Egypt, Turkey, UAE +965 2 2246900 corp.comms@nbkcapital.com ww.nbkcapital.com
SEDCO
Jeddah, KSA UAE +971 4 3637166 ramib@sedco.com www.sedco.com
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Abraaj Capital Abu Dhabi Capital Management Abu Dhabi Future Energy Company Abu Dhabi Investment Company Abu Dhabi Investment House Accelerator Technology Holdings ADCB Macquarie Corporate Finance Al Arabi Investment Group Company Al Futtaim Investment Management Limited
Berytech BMA Capital BMCE Capital Boubyan Bank Capital Invest Capital Trust Capivest Investment Bank Carlyle Mena Investment Advisors Limited Catalyst Investment Management Company CDG Capital
Education Capital EFG Hermes Syria EFG-Hermes Private Equity Emerging Markets Partnership (Bahrain) Estithmaar Ventures (GP) Limited EVI Capital Partners Evolvence Capital Foursan Group Global Capital Management Limited Gulf Capital HBG Holdings HSBC Bank Middle East HSBC Private Equity Middle East Limited IdeaVelopers Injazat Capital Instrata Capital Intel Capital Investcorp Bank Investment Boutique Investment Manager
Al Imtiaz Investment Company CedarBridge Partners Al Mal Capital CERT Capital Al Masah Capital Management Limited Citadel Capital Al Rajhi Capital Concord International Investments Alcazar Capital Limited Corporate Finance House Amundi Creative Edge Technology Amwal AlKhaleej Commercial Investment Company Arbah Capital Arcapita Bank Athar Al Majd Holdings Attijariwafa Bank Aureos Morocco Advisers Beltone Agriculture Management Beltone Private Equity Daman Investments DB Climate Change Advisors Delta Partners Deutsche Bank IT Ventures/Nile Capital Dubai International Capital Ithmar Capital Dubai Islamic Bank KIPCO Asset Management Company Eastgate Capital Group Eco-Syria Company Limited
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KKR Kuwait Finance and Investment Company Kuwait Finance House Kuwait Finance House Bahrain Kuwait Financial Centre Kuwait Investment Company Levant Capital Limited Malaz Capital Manara Equity Partners Marshall Fund Capital Advisors Masdar Venture Capital MENA Advisors Limited MerchantBridge and Co Middle East Capital Group Middle East Venture Partners Millennium Private Equity Minah Partners Moroccan Information Technopark Com pany
Venture Capital Bank Viveris Management PrimeCorp (France) Qatar Capital Partners RAIS (Netherlands) Rasmala Holdings Limited Riyada Enterprise Development Riva y Garcia Financial Group Sabre Abraaj Management Company Saffar Sawari Ventures Saham Group SHUAA Capital SHUAA Capital Saudi Arabia SHUAA Partners Siparex Group Siraj Capital Dubai Limited Siraj Fund Management Company Sphinx Private Equity Management
NBK Capital Limited Swicorp New Enterprise East Investments The Financial Corporation Company Upline Investments The National Investor Pharos Financial Advisors Limited Tuareg Capital Unicorn Investment Bank
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