The Gulf is probably "the only sunny region in the global landscape for private equity", the head of Gulf Capital said yesterday.
"There are different options and the chance to time exits properly," said Karim el Solh, the company's chief executive. "We're telling our managers not to listen too much to what is happening outside and to focus on doing business here and we'll get our rewards down the line. It has switched from a seller's market to a buyer's market for private equity in this region."
One private equity deal has been signed in the past 48 hours and others are close to being signed.
Gulf Capital, a private equity firm focusing on investments in the region, believes a lot of opportunities are available in the oil, healthcare and education sectors. The firm formed an alliance with Credit Suisse in the spring of this year and is going ahead with the launch of a US$500 million (Dh1.8 billion) fund that is already oversubscribed and expected to close by the end of this year.
Investcorp, a private equity firm based in Bahrain, announced yesterday it had acquired a 36 per cent stake in Redington Gulf, a fully owned unit of the Indian IT distributor, Redington India, for $98 million (Dh360m).
"Our plan is to grow the company organically in the Middle East and North Africa region and Central Asia," said Azmat Taufique, Investcorp's managing director and co-head of the Gulf Growth Capital business. The deal will enable Redington Gulf to expand throughout the Middle East and Africa. "We may also look into acquisitions where it makes sense," he said.
Investcorp will finance the deal through its Gulf Opportunity Fund I. The fund has a capital of $1.1bn and is designated for investments in the Gulf, the Middle East and North Africa.
"We're seriously looking into 50 to 60 companies in the region but now doing due diligence on a dozen," Mr Taufique said. "We expect to do 12 to 14 deals in the fund within an investment period of four years."
The fund will target opportunities in the energy, construction, infrastructure and consumer-related sectors at a net return in the range of 20 per cent annually, he said.
However, Investcorp's chief operating officer, Gary Long, said on Monday that the investment firm's portfolio companies were under stress, that getting leverage for deals was difficult and that some investors were nervous.
"Dealflow is down, leverage is a lot more difficult... and returns are under pressure," Mr Long said. "That's true for private equity, that's true for hedge funds, and that's true for real estate investing."
However, the situation is different in the Gulf. "This is a golden age for private equity in the Gulf."
Kuwait's Global Investment House announced yesterday that it was looking to close six private equity deals before the end of the year despite challenging conditions amid global economic turmoil.
"We're looking at two more investments to close by December and another four buyouts to finalise by end of November," said Amitava Ghosal, the assistant vice president for private equity funds at Global Investment House.
"Raising money is obviously more challenging now but with a track record and the trust of investor base, a lot can be done."
Global Investment House manages close to US$10 billion worth of assets, out of which $3bn are mostly in private equity. The company has four private equity funds, two of which are fully invested.
"The Global Investment House Opportunistic Fund II will be fully invested by the end of this year. We target minority stakes in non-oil sectors in the Middle East and North Africa region," Mr Ghosal said.
The company hopes to finalise four buyout deals by the end of November through its $615m Global Buyout Fund, Mr Ghosal said.
"Close to $270m has been invested so far and by the end of November, 75 per cent of the fund will be invested," he added.
The buyout deals will target one construction company and one interior design company in Dubai, a logistics firm in Kuwait and a contracting company in Saudi Arabia.
On Monday, the private equity firm Abraaj Capital, based in Dubai, said it had raised almost Dh11bn for its new buyout fund.
"We see opportunities in all sectors across the region. It's the best time to be cautiously looking at transactions as valuation expectations become more realistic," said Mustafa Abdulwadood, the company's managing director.
Abraaj Capital, which specialises in private equity buyouts in the Middle East, North Africa and South Asia, has struck several deals in the region and has now more than $5bn of assets under management.
shamdan@thenational.ae
* with Dow Jones
ESSENTIALS
The flights
Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.
The trip
From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.
Dubai Rugby Sevens
November 30, December 1-2
International Vets
Christina Noble Children’s Foundation fixtures
Thursday, November 30:
10.20am, Pitch 3, v 100 World Legends Project
1.20pm, Pitch 4, v Malta Marauders
Friday, December 1:
9am, Pitch 4, v SBA Pirates
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Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Infobox
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Imperial%20Island%3A%20A%20History%20of%20Empire%20in%20Modern%20Britain
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RESULTS
2pm: Handicap (PA) Dh 40,000 (Dirt) 1,200m
Winner: AF Senad, Nathan Crosse (jockey), Kareem Ramadan (trainer)
2.30pm: Maiden (PA) Dh 40,000 (D) 1,000m
Winner: Ashjaan, Fabrice Veron, Eric Lemartinel.
3pm: Maiden (PA) Dh 40,000 (D) 1,700m
Winner: Amirah, Conner Beasley, Ali Rashid Al Raihe.
3.30pm: Handicap (PA) Dh 40,000 (D) 1,700m
Winner: Jap Al Yaasoob, Szczepan Mazur, Irfan Ellahi.
4pm: Sheikh Mansour bin Zayed Al Nahyan Cup Prestige Handicap (PA) Dh 100,000 (D) 1,200m
Winner: Jawaal, Fernando Jara, Majed Al Jahouri.
4.30pm: Handicap (TB) Dh 40,000 (D) 1,200m
Winner: Manhunter, Ryan Curatolo, Mujeeb Rahman.
Opening weekend Premier League fixtures
Weekend of August 10-13
Arsenal v Manchester City
Bournemouth v Cardiff City
Fulham v Crystal Palace
Huddersfield Town v Chelsea
Liverpool v West Ham United
Manchester United v Leicester City
Newcastle United v Tottenham Hotspur
Southampton v Burnley
Watford v Brighton & Hove Albion
Wolverhampton Wanderers v Everton
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Company%20Profile
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
COMPANY%20PROFILE%20
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COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Match info:
Wolves 1
Boly (57')
Manchester City 1
Laporte (69')