The Dubai-based firm is jointly owned by Societe Generale and Credit Agricole and has assets worth $6.2bn. It seeks to expand its assets and presence in North Africa by taking over the management of the $161 million SGAM Al Kantara Fund as well as absorbing the 11-member Amundi investment team. Amundi?s stake in the Kantara Fund has also been acquired by Abraaj.
Mustafa Abdel-Wadood, CEO of Abraaj Capital Limited said, ?We are firm believers in using local knowledge and top tier expertise in all the markets in which we invest to ensure that our deal flow is as good as it possibly can be.?
The Kantara Fund is a buyout and expansion capital fund with main focus on small and mid-cap investment opportunities in North Africa including 5 investments in Morocco and Tunisia.
EXPANSION WITHIN MENA
Abraaj?s recent move fits well with the Riyada Enterprise Development (RED), the small and medium enterprise (SME) investment platform of the firm that is focused on investing in SMEs in the broader Middle East and North Africa region (MENA). Using this platform, the investment group intends to invest more than $500 million of capital into small and medium enterprises right across the MENA region.
The senior partner at Abraaj, Tom Speechley, stated, ?This investment demonstrates our commitment to unlocking the economic potential of the Maghreb ? a rapidly emerging growth region with favourable demographics and significant long-term economic development opportunities.?
Last month Abraaj has put an end to acquisition talks with Egyptian private equity firm Citadel Capital.
According to figures from London-based research firm Preqin the Middle East and North Africa regions are important investment areas for private equity firms, which have raised $22.7 billion to invest into the area in the past five years.
Sources: Arabian Business, Khaleej Times