CAIRO: Abraaj Capital, a private equity investment firm in the Middle East, North Africa and South Asia (Menasa) region, announced recently a record $1.2 billion second closing of its Infrastructure and Growth Capital Fund (IGCF), providing the fund with total commitments of $1.7 billion beginning last September. IGCF, capped at $2 billion upon final closing this year, is now the largest private equity fund in the history of the region. This year alone, Abraaj ventured into five investments for IGCF, including a strategic pre-IPO stake in Air Arabia, the first low-cost carrier in the region, and the 100 percent acquisition of Egyptian Fertilizers Company (EFC), the largest private equity-led leveraged buyout in the history of the Mena region.
“The transactions in which we have invested are exceptional, representing companies that are market leaders in their respective sectors, which should enable us to comfortably surpass our benchmark returns, Arif Naqvi, chief executive officer of Abraaj Capital, said in a press statement. “Indeed, we expect the fund to be fully invested within a two-year time frame, a record that will greatly benefit the investors who have participated in this fund.
With more than $4 billion of assets currently under management, Abraaj Capital invests across the board mainly in real estate, retail, financial services, transportation, construction, and Internet services. Besides managing seven private equity funds, Abraaj Capital Holdings Limited is the single largest shareholder in the region’s leading investment bank EFG-Hermes. Abraaj made its first step into Egypt when it established one of the largest retailers in the country: Spinneys.
The key targeted sectors for the fund encompass education, transportation, healthcare, power and utilities, oil and gas, as well as petrochemicals, among others. Abraaj Capital estimates that investment opportunities in these sectors will exceed $630 billion.
Thirty percent of the fund’s commitments came from investors outside the region. Deutsche Bank – a partner in the fund – led these international fundraising efforts. “A second closing at a high level for IGCF in less than a year since the fund’s activation is an achievement, particularly considering the current global investment climate, commented Ashok Aram, head of bond at Deutsche Bank.
“It has allowed us to offer our international investors a chance to participate in the growth opportunities in the Menasa region.
