Dubai PE firm Abraaj to invest $2 bln in 2011, 2012

Dubai PE firm Abraaj to invest $2 bln in 2011, 2012

Expects to close three to four deals this year: CEO; CEO declines to give specifics on investment plans; Experts expect revival for industry in 2011

January 23, 2011 3:34 by Reuters

Dubai-based Abraaj Capital expects to invest $2 billion in 2011 and 2012, and the private equity firm is eyeing a number of deals this year, its top executive said, signalling a revival for the battered industry.

“We have a fund which is worth $2 billion dollars, and we are looking to deploy most of it this year and next year,” Arif Naqvi, Abraaj’s chief executive officer, told reporters on the sidelines of an investment conference in Riyadh on Sunday.

The private equity firm expects to complete several deals during the year.

“I would be disappointed if we did not do at least 3-4 deals. The market is back,” he said.

Middle East private equity investments plunged in the last couple of years, with investors backing out of capital calls, sellers demanding higher prices than buyers were willing to pay and increasing competition from family groups hampering growth.

But the industry is slowly showing signs of revival in 2011, and experts see more deals closing than in the previous two years. Earlier in the month, British-based international bank Standard Chartered said its private equity arm expected to complete two transactions in the Middle East in 2011 and does not rule out another $100 million deal.

In December, Dubai-based lender Emirates NBD said it would sell a 49 percent stake in its subsidiary Network International for 2 billion dirhams ($539 million) to Abraaj.

Abraaj is the Middle East’s biggest private equity fund, having raised $7 billion since it started in 2002. (Reporting by Ulf Laessing and Reem Shamseddine, Writing by Dinesh Nair; Editing by Will Waterman)