Banking & Finance
StanChart Private Equity Spinoff Plans Middle East Investment
(Bloomberg) — Affirma Capital, the private equity spinoff of Standard Chartered, plans to complete at least one acquisition in the Middle East and Africa over the next year.
The Singapore-based emerging markets group is targeting deals between $25 million and $100 million in the region where consumer spending is on the rise, according to Taimoor Labib, Affirma’s founding partner, head of the Middle East & North Africa and chairman of Africa.
The company has about $700 million to spend after it completed a management buyout of the U.K.-based lender’s private equity business in July.
Affirma, which already manages $3.6 billion in assets, is particularly interested in Egypt, Nigeria, and Jordan, Labib said. The firm is also planning to exit one of its investments in the Middle East and Africa over the next 12 months.
More from the interview with Affirma’s Labib:
- “Post devaluation, for dollar-based investors, it’s a great time to go into Egypt. It’s still early, but we’ve looked at quite a few businesses especially in the food and beverage and retail sectors.”
- “We’re positive on Saudi from a big-picture perspective. The strategic plans make sense and investors are waiting to see GDP growth and macro trends in 2019. If you see the improvement continuing, which we have seen in the first half, private equity will return in scale in 2020 or 2021.”
- “Nigeria is another country that went through a painful devaluation and are a year or two behind Egypt in their growth story. They need a decent 2019 to continue to recover, but Nigeria 2020 could be interesting as well. People want to consume and businesses want to expand.”
- “An internal rate of return of 25%, that’s the goal, that has to be the target to get well-groomed limited partners into an emerging market fund.”
- “To say Abraaj hasn’t hurt the Middle East or it hasn’t hurt all emerging markets would be disingenuous. We and others are going to have to prove ourselves more to LPs. It’s going to be longer fundraising cycles and the know-your-customer requirements for U.S. and European institutions will increase.”
-
Alamaliktistaad Magazines2 months ago
Al-iktisaad, November 24
-
OER Magazines1 month ago
OER Magazine: December 2024 Edition – The Most Trusted Brands in Oman
-
Energy2 months ago
Oman and Belgium Strengthen Green Hydrogen Partnership with New Landmark Agreement
-
Energy2 months ago
OUTLOOK: Emerging Markets and Renewables – The Twin Engines of Energy Growth for 2025
-
Technology1 month ago
EXCLUSIVE: Technological Singularity – Will It Become Humanity’s Greatest Leap or Its Most Perilous Step?
-
Magazines2 months ago
OER Magazine: November 2024 Edition
-
Oman2 months ago
Oman Braces for Launch of First Experimental Rocket Duqm-1 on 4 December 2024
-
Oman2 months ago
Transport Ministry Issues New Regulation for Security of Ships, Ports
You must be logged in to post a comment Login