2011 mena annual reportv1

2011MENA PRIVATE EQUITY ASSOCIATIONPRIVATE EQUITY & VENTURE CAPITAL

IN THE MIDDLE EASTANNUAL REPORT

June 2012

2

REPORT STEERING COMMITEE • AhmedEmara,ReAyaHolding

• AnthonyHobeika,GulfCapital

• AliArab,Zawya

• AzizMoolji,AbraajCapital

• ImadGhandour,CedarBridgePartners

• KarimBenSalah,Swicorp

• SamerKhalidi,NBKCapital

• SamerSarraf,AmwalAlKhaleej

SPECIALTHANKSSpecialthankstooursponsorsandallthosewhohelpeddeveloptheReport.

REPORT SPONSORS • AbraajCapital

• AfricInvest-TunInvest

• NBKCapital

• QatarFirstInvestmentBank

• Swicorp

KPMGDaleGregory,BradWhittfield,JawadShafiqueandZuhaibKhan

ZawyaAliArab,HussamMuhieddineandLaraGhibril

AMIC(MoroccanVentureCapital&PrivateEquityAssociation):

FrancoiseGiraudon,OmarChikhaoui,StephanieBillardandWilliamFellows

CapitalMSLNahedAshour

Wewouldalsoliketothankallthesurveyparticipants.

3

TABLEOFCONTENTS

01. IMPORTANT NOTICE 05

1.1 BASIS OF PREPARATION

1.2 MOROCCO DATA

1.3 DEFINITIONS & ASSUMPTIONS

1.4 DATA FILTERING

02. INTRODUCTORY MESSAGES 09

THOUGHTLEADERSHIP:MENAMACROFUNDAMENTALSIN

THEAFTERMATHOFTHEARABSPRING

2.1 MENA PEA INTRODUCTORY MESSAGE

2.2 KPMG INTRODUCTORY MESSAGE

03. PRIVATE EQUITY IN THE MENA REGION 18

3.1 SUMMARY

3.2 FUNDS

3.2.1 FUNDS RAISED TO DATE

THOUGHTLEADERSHIP:THESHAKEOUTISTHENUMBERS

3.3 INVESTMENTS

3.3.1 INFORMATION LIMITATIONS

3.3.2 INVESTMENTS MADE TO DATE

3.4 REGIONAL FOCUS

THOUGHTLEADERSHIP:REALITIESOFINVESTINGINKSA:

OPPORTUNITIESANDDIFFICULTIES

3.5 SECTOR FOCUS

THOUGHTLEADERSHIP:HEALTHCARESECTOR-

OPERATINGCHALLENGESINAFAVORABLEMACROENVIRONMENT

THOUGHTLEADERSHIP:INVESTINGINEDUCATION-

LESSONSLEARNEDFROMTHEFIRSTROUND

3.6 EXITS

THOUGHTLEADERSHIP:PRIVATEEQUITY&THEARABSPRING

4

TABLEOFCONTENTS

04. SURVEY OF GPS OF THE MENA REGION 39

4.1 INTRODUCTION

4.2 SURVEY RESULTS

4.2.1 RESPONDENT PROFILE

4.2.2 OUTLOOK

4.2.3 REGIONS AND SECTORS OF INTEREST

4.2.4 THE IMPACT OF THE FINANCIAL AND POLITICAL CRISIS

05. ABOUT THE MENA PRIVATE EQUITY ASSOCIATION & AMIC 56

06. SPONSOR PROFILE 59

07. MEMBERS DIRECTORY 66

08. PRIVATE EQUITY & VENTURE CAPITAL FIRMS IN MENA 70

5

1 IMPORTANTNOTICE

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1 IMPORTANTNOTICE1.1 BASIS OF PREPARATION

ThisreporthasbeenpreparedbasedondataprovidedbytheMENAPrivateEquityAssociation,andsourced

fromtheZawyaPrivateEquityMonitor.

Historicaldatahasbeenupdatedfromthatusedinthe2010AnnualReporttoreflectincreaseddisclosureof

informationinthemarket.KPMGmemberfirmshavenotinitiatedanyprimaryresearchinrelationtothis

draftreportandhavenotsought toestablishorconfirmthereliabilityof thedataprovidedbytheMENA

PrivateEquityAssociationandZawya.

The information containedherein is of ageneralnature and isnot intended to address the circumstances

of anyparticular individualor entity.Althoughweendeavor toprovideaccurate and timely information,

therecanbenoguaranteethatsuchinformationisorwillcontinuetobeaccurate.Nooneshouldactonsuch

informationwithoutappropriateprofessionaladviceafterathoroughexaminationoftheparticularsituation.

Inanalysinganddeterminingtheparametersofavailabledata,ithasbeennecessarytoapplycertaincriteria,

themostsignificantofwhichareasfollows:

•PrivateequityhasbeendefinedtoincludehousesthathaveaGeneralPartner/LimitedPartnerstructure,

investmentcompaniesandquasi-governmentalentities thatarerunby,andoperate in thesamewayas,a

privateequityhouse.

•Venturecapitalforthepurposeofthisreportisdefinedasafundspecificallydedicatedtoventurecapital

investments.ThisincludesfundsbyVentureCapitalFirms,andVentureFundsunderPrivateEquityFirms.

•FundsmanagedfromMENAbutwhosefocusistoinvestsolelyoutsidetheregionareexcludedfromthe

fundraisingandinvestmenttotals.

•MENAincludesAlgeria,Bahrain,Egypt,Iraq,Jordan,Kuwait,Lebanon,Libya,Morocco,Oman,Palestine,

Qatar,SaudiArabia,Sudan,Syria,Tunisia,UAE,andYemen.

•Investmentsizerepresentsthetotalinvestment(boththedebtandequityportions).Howeverfundsizeonly

considersequityinvested,aswehavenovisibilityondebtexposurebyfunds.

•Thefundraisingtotalsaretheamountsclosed/committedforfundraisingfunds,closedfunds,investing

funds,fullyvestedfundsandliquidatedfunds.

•Exitshavebeendefinedtoincludepartialexits,althoughsimpledilutionshavenotbeenincluded.

IMPORTANTNOTICE

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WehaveworkedwithAMIC,theMoroccanVentureCapital&PrivateEquityAssociationonPE/VCdatafor

Morocco.However,giventimeconstraintsanddifferencesincollectionformat,wewerenotabletoupdateall

chartsforthe2011AnnualReport.Weareworkingtowardunifyingthedatafornextyear’sreport.Fordetailed

informationon theMoroccanPE/VCindustry, refer to the2011AMICPrivateEquityReport,availableat:

http://issuu.com/amicdocumentation

For analyticalpurposes,wehave considered the following typesof funds, asdefinedbyZawya’sPrivate

Equitymonitor:

•Announced:Officiallaunchoffundswhichareyettocommencefundraising.

•Rumoured:Fundsexpectedtoannouncetheirintentiontocommencefundraising.

•Fundraising:Fundswhichhavebeenannouncedandareintheprocessofraisingcapital.

•Investing:Fundswhichhaveclosedandareactivelyseekingand/ormakinginvestments.

•Fullyinvested:Fundsthathaveinvestedallcapitalraised.Someoftheinvestmentsmayhavedivestedin

thisstagebutnotall.

•Liquidation:Fundswhichhavedivestedallinvestmentsandhavefulfilledallobligationstoshareholders.

TheprimarydatasourcedfromZawyahasbeenfilteredaccordingtothedefinitionsusedintheEmerging

MarketsPrivateEquityAssociation(EMPEA)researchmethodology.Inparticularwehaveusedthefollowing

definitions:

FundSize:Inthecaseoffundsyettomakeafirstclose,orwherenocloseinformationisavailable,fundsizeis

equivalenttothetargetamount,andisnotedassuch.Forfundsachievingatleastoneofficialclose,fundsize

isreportedasthecapitalraisedtodate,whileforfundsthathavemadeafinalclose,thefundsizeisthetotal

capitalraised.AllamountsarereportedinUSDmillions.Rumouredfundsareexcluded.

Currency:WherefundsdatahasbeenprovidedinacurrencyotherthanUSD,exchangeratesappliedarefrom

thelastdayofthemonthinwhicheachcloseisreported,e.g.firstclosereportedin€on15April2011would

becalculatedusingtheexchangeratefor30April2011,takenfrompubliclyavailablesources.

1.2 MOROCCO DATA

IMPORTANTNOTICE

1.3 DEFINITIONS AND ASSUMPTIONS

1.4 DATA FILTERING

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Fundsoffundsorsecondariesareexcluded.

Region: Statistics are based on the ‘market’ approach and funds are categorised based on the intended

destination for investments (asdefined in a fund’s announcedmandate) as opposed towhere theprivate

equityfirmislocated.

Withregardtomulti-regionfunds,wehaveincludedthesetotheextentthatthereisafocusontheMENA

region.EMPEAmethodologyincludesonlythosemulti-regionfundswhoseprimaryintentionistoinvestin

emergingmarkets.However,thesourcedatadoesnotprovidevisibilityonprimarygeographicintention.

Fundsestablishedwithaspecificmandatetoinvestinrealestateareexcludedfromthefundraising,investment

andexittotals.Theremainingrealestateinvestmentsrelatetofundswithmixedinvestmentmandates.

Conventional infrastructure funds, or funds investing directly in greenfield infrastructure projects (e.g.

bridges,roadsetc.)areexcludedfromfundraisingtotals.However,fundsthatmakeprivateequityinvestments

(determinedbasedontargetreturns)incompaniesoperatingintheinfrastructuresectorareincluded.

EMPEAdoesnottrackorreportotheralternativeassetclasses,includinghedgefunds,realestatefundsand

conventionalinfrastructurefunds.Inouranalysiswehaveexcludeddatafrominvestment-typecompanies,

realestatefirmsandSovereignWealthFunds.

IMPORTANTNOTICE

9

2 INTRODUCTORYMESSAGES

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2 MENA Private Equity Association: Introductory Message

The conclusions of this report are surprisingly positive given the backdrop of theArab Spring and the

subsequentturnofeventsintheregion.Onewouldhaveexpectedthatinvestorsandfundswouldhaveshied

awayduring2011giventheoverhangofpoliticaluncertainty–buttothecontrary,thevolumeofinvestments

anddivestmentsintheMENAregionincreasedrelativeto2010.

Thispositivemomentumwithintheprivateequitylandscapeisnotsurprisingforthosewhoareintimately

familiarwith the business activity in the region. FromMorocco to theArabianGulf, there are numerous

pocketsofgrowththatprivateequityplayersarepartakingofbothtodeploycapitalandtoreturncapitalto

theirinvestors.WhetheritisretailinDubai,healthcareinSaudiArabia,technologyindustriesinEgypt,oroil

servicesinIraq,tonameafew,thereisabroadspectrumofinvestmentopportunitiesthatareattractingboth

privateequityandstrategicinvestors.

Thecloudedmacroenvironmentmayhaveaffectedtheappetiteofinvestinginregionalprivateequityfunds.

Butpoliticalrisksintheregionmayhavethesamedetrimentaleffectonequityvaluelikeregulatoryrisksin

ChinaoreconomicrisksinEurope.Privateequity–asan“alternative”assetclass-isaboutinvestingingrowth

opportunitiesthatarelesscorrelatedtothegeneralbusinessenvironment,and,insomecases,takeadvantage

of such unfavorable circumstances. Competent regional managers, like their counterparts elsewhere in

developedandgrowthmarkets,havelearnedtonavigatearoundregionalrisks,andaredemonstratingtheir

abilitytodeliverreturnstotheirinvestors.Therealizedexitsinadifficultyearlike2011clearlyunderscore

theirachievement.

Astheindustryconcretizesitsaccomplishmentsanddistillsbettermanagers,ouraimasanindustryassociation

istocommunicateandcelebrateoursuccesseswithourlimitedpartners’community,andtoemphasizethat

privateequityintheMENAregionisheretostayandprosper.

INTRODUCTORYMESSAGES

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KPMG is pleased to continue its association with the MENA Private EquityAssociation in, once again,

producingtheannualreportontheprivateequityandventurecapitalindustriesintheMENAregion.

While2011continuedtopresentcertainchallengesforthePEindustryintheregion,itwasencouragingtosee

thetotalknownnumberoftransactionscompletedbyMENAfocusedfundsincreaseforthefirsttimeinrecent

yearsfrom70in2010to73in2011.PEfirmscontinuetobecautiousintheirinvestmentstrategiesfavouring

thenon-cyclicalanddefensivesectorswithstronglong-termfundamentals.

Total fundraisingdecreasedin2011comparedto2010,astherewasanoticeableshift intheregion’sfund

raisingfocuswith6ofthe10majorfundswhichsuccessfullyclosedduringtheyearhavingagrowthcapital

investmentfocus(anincreasefrom3 in2010). It isencouragingtoseeagreaternumberof fundsfocuson

growthcapitalinvesting,sincemostprivatecapitalinvestingopportunitiesintheregionaregrowthorientated

innature.Inaddition,tomaximiseinvestingflexibility,investorsarenowlesswillingtolimittheirinvestment

focusbysector,andprefertheflexibilitytolookforvalueacrossabroadrangeofsectors.

Whilestrongmacro-levelfundamentalscontinuetoplayastrategicroleinMENA’seconomicroadtorecovery,

theestablishmentofpoliticalandsocialstabilityremainimportantelementsfortheinvestingenvironmentin

theshorttomediumterm.Withtheongoingslowdownofmorematuremarkets,MENAislikelytoremaina

regionofopportunityandhubforprivateequityandventurecapitalactivity.

WewouldliketonotethatthisreportwouldnothavebeenpossiblewithouttheeffortsofZawya,theMENA

PrivateEquityAssociationandthemembersoftheReportingSteeringCommittee.Wearegratefultothem

forsharingprimarydataandindustryinsights,andwesupporttheeffortsoftheAssociationinfurtheringthe

interestsofPrivateEquityintheMiddleEast.

DaleGregory,Partner–TransactionServices

T:+97144030300-E:[email protected]

KPMGisaglobalnetworkofprofessionalfirmswithover145,000staffinmemberfirmsacross153countries.

KPMGintheUAEwasestablishedin1974andhasgrownto650professionalstaffledby31Partners,across8

officesinthecountry.WeworkcloselywithourcolleaguesinofficesthroughouttheMENAregionandacross

theworld.

INTRODUCTORYMESSAGES

KPMG Introductory Message

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Thought Leadership:

MENA Macro Fundamentals in the Aftermath of the Arab Spring:

A Large Gap of Catch-Up Growth to Bridge by a Too-Big-To-Ignore MENA Economy

Anthony Hobeika, Head of Research, Gulf Capital Pvt. JSC

Theneedformoreequitableandsustainableeconomicexpansion,alongsidesocialbenefitsforunprivileged

people,wasakeysocio-economicdriveroftherecentwaveofpoliticaltransformationinanumberofMENA

countries (suchasTunisia,Egypt,Libya,YemenandMorocco).At thesame time, thegrowingrecognition

thatthesesocialandeconomicneedscannotbeignoredhasfurthercreditedthereformprocessandstimulus

packagesinothercountries(mainlytheArabianGulf).

Forwell-entrenchedregionalprivateequity(PE)investors,theArabSpringrepresentsahistoricopportunity

togaugelong-termgrowthprospects inmanyindustriesandgeographies,notwithstandingtheshort-term

challengesofinvestinginselectedcountriesarisingfromthetransitoryaspectofthecurrentevents.Patient

andinformedPEplayerswillbeabletobenefitfromhighlyinterestingsuccessstoriesinmanyareasofthe

MENAeconomies.

THOUGHTLEADERSHIP

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Specifically,withanaggregatedGDPofcircaUSD2.5trillion,theMENAregionhasbecomealarge,emerging

economiczonethatishardtoignoreonaglobalscale.Itssizeisnowcomparabletoemergingeconomiessuch

asBrazil,RussiaandIndiaofferingacompetitivedepthforsizeableinvestments.Itisalsodeliveringhealthy

andsteadygrowthineconomicactivity,supportedbyattractivefundamentals.

Theeconomicdynamicslookincreasinglyappealing,andmaybefurtherunlockedbytheongoingpolitical

THOUGHTLEADERSHIP

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transitionsandreformsthroughouttheregion.AlthoughthedifferentMENAcountriesareatunevenstages

oftheirdevelopment,theaverageArabianeconomyisatthecatch-upstageofhighgrowth.Whencoupled

withitsyoung,fast-growingpopulationbyglobalstandards,theregionoffers investmentopportunities in

demographically-drivenandincome-drivennichesectors.

Consumersectorssuchasfoodandbeverage,healthcare,education,powerandwater,andretailaretypical

benefitersinsuchgrowtheconomies.PEfirmsthatareabletoidentifythekeytrendswithintheseindustries

willbebestplacedtooutperformthewidereconomy.

Specificopportunitieswilldependonwhereeachcountrystandsinthelong-termeconomiccycle.Forexample,

whileintermsofdepththeUAE,KSAandEgypthavecomparableconsumermarketsizes,thesecountriesare

atdifferentstagesoftheirmaturingprocess,whichwouldimplydifferentinvestmentstrategiesandgrowth

potential.

THOUGHTLEADERSHIP

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Inboththeimmediateandlonger-term,theArabianGulfcountriesappeartobemoreimmunefromeconomic

spillovereffectswhencomparedtotherestoftheregion,inparticularintheaftermathoftheregionalpolitical

disturbances.Inadditiontohavinglimitedornopoliticalunrest(barringBahrain),itisthecombinationof

severalfundamentaleconomicandpolicyfactorsthatmakestheGCCcountriesamoresustainableenvironment

foreconomicprosperity.

THOUGHTLEADERSHIP

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Thesefactorsincludethesub-region’slargebaseofnaturalresources,governmentcapabilityanddevotionto

supportlocaleconomies,progressivereforms,anddiversificationawayfromoil.GCCconsumersarespending

onthebackofrisingpurchasingpowerandgovernmentsareimplementinglarge-scaleinfrastructureprojects.

TheGCCregionisthusincreasinglyviewedasanattractiveinvestmentdestination,inparticularfromarisk/

rewardstandpoint.

Inthelongerrun,otherMENAcountriesarealsostrongcandidatesforattractinginvestment,asanumberof

theseeconomiesaregrowingfromanexceptionallylowbasewhencomparedtoglobalandemergingmarkets.

Manyhavesufficientlylargeandfast-growingyoungpopulationsyettotapthelabormarket,thusfueling

domesticdemandandeconomicgrowth.

Inparticular,thecountrieswitnessingcurrentpoliticalchanges,suchasEgypt,Morocco,TunisiaandLibya,

have a historic chance to bridge the vast untapped potential for growth. However, the current political

transitions,aswellastheimplementationoflong-awaitedreformsbythenewpoliticalclass,arekeychallenges

toovercomeinthenearfuture.

THOUGHTLEADERSHIP

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THOUGHTLEADERSHIP

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3 PRIVATEEQUITYINTHEMENAREGION

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2011was an encouraging year for theMENAprivate equity industry.Despite challenges posed by socio-

politicalunrestinanumberofcountries,theindustrybegantoshowsignsofrecovery.Industrydatareveals

an increase in deal volumes, while a number of funds successfully raised capital, despite a challenging

fundraisingenvironmentfortheindustryglobally.

AnumberofcountriesthatexperiencedsocialunrestaspartoftheArabSpring,whichbeganwithTunisia

andEgyptin2010andspreadtoBahrain,Libya,SyriaandYemenin2011,continuetofaceheadwindsintheir

transitiontoamorestablepoliticalandsocialenvironment.However,itisanticipatedthattheArabSpringhas

thepotentialtousherinimprovedgovernance,greatertransparencyandamorestableinvestmentenvironment

whichshouldleadtotheopeningupofmarkets,which,withtheexceptionofEgypt,havetraditionallyoffered

limitedopportunitiestoprivateequityplayers.

InadditiontothistheeventsoftheArabSpringhighlightedtheneedforregionalgovernmentstoadoptand

institutebroaderreformpoliciesencompassingeducation,jobcreationthroughinvestmentininfrastructure

andentrepreneurshipandthedevelopmentofamorecompetitiveandparticipativeprivatesector.Asregional

governmentsacceleratetheirdrivetobuildsustainable,diversifiedeconomies,supportedbystrongunderlying

macroeconomicfundamentals(suchasabundanceofhydrocarbonsandfavorabledemographics)whichare

expectedtocontinuetodriveeconomicgrowthinthemediumandlongterm,reformsinstitutedwillcontinue

toincreasethescopeforinvestmentssupportingthePEindustry.

PRIVATEEQUITYINTHEMENAREGION

3 PRIVATEEQUITYINTHEMENAREGION3.1 SUMMARY

Note: While we have included a total “transaction value” in the chart above, this excludes a number of transactions for which the value is unknown (some of which are estimated to be considerably large in value terms).Source: Zawya Private Equity Monitor and AMIC.

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Overthepastthreeyears,followingtheglobaleconomicslowdown,fundraisingintheregionhasaveraged

USD113millionper close,withUSD0.7billionbeing raised in2011,USD0.8billion lower than the total

fundsraisedin2010.Morethan10fundsweresuccessfulinraisingcapitalin2011,withanincreasedfocuson

growthcapital-focusedvehicles.

Itisalsoencouragingtoseethetotalnumberoftransactionsincreasingforthefirsttimeinrecentyears,despite

thepoliticalinstabilityintheregion.Egyptreturnedasoneoftheleadingdestinations,claiming22%ofthe

totalnumberofinvestmentsin2011(comparedtojust4%in2010).Also,continuingthetrendseenin2010,the

KingdomofSaudiArabia(KSA),TurkeyandtheUnitedArabEmirates(UAE)remainedpopulardestinations

forinvestmentin2011.

PEfirmscontinuedtoinvestcautiouslyandfavornon-cyclicalsectorssuchastransportation,healthcare,energy

andfood/agriculturewhichaccountedfornearlyathirdoftotalnumberofinvestmentsin2011.Sectorsthat

weremostsignificantlyimpactedbytheglobalfinancialcrisis,suchasrealestateandconstruction,continued

toseereducedactivity.

AsthenascentPEindustryintheregionbeginstomature,fundsarebeginningtoapproachtheendoftheir

expected life cycle and hence PE players are increasingly focusing onmanaging exits. In the immediate

aftermathoftheglobalfinancialcrisis,mostregionalprivateequityplayersincreasedtheirfocusonpreserving

andenhancingvaluewithintheirportfolios.Thisstrategyseemedtohavepaidoff,andthenumberofexitsin

2011increasedto30,relative,to7and23in2009and2010.Thistrendislikelytocontinuein2012with23%of

managersstatingthattheywillbeprimarilyfocusedonexitsduringthisyear.

Global macro-economic headwinds, driven primarily by uncertainty in Europe created a challenging

fundraisingenvironmentforthePEindustryglobally.Totalcapitalraisedreacheditslowestpointin6years

withtotalfundsraisedrepresentinga2.5%declinerelativeto2010and60.5%declinerelativeto2008*.

Theadverseglobalmacroeconomicbackdrop, combinedwith the eventsof theArabSpring, resulted ina

3.2 FUNDS

3.2.1 FUNDS RAISED TO DATE

* Source: Bain & Company Global Private Equity Report 2012, p19.

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challengingfundraisingenvironmentinMENAin2011,withonlyUSD$0.7billionoffundsraisedduringthe

yearrelativetoUS$1.5billionin2010.

Consequently, cumulative funds under management grew to USD 23.2 billion in 2011. The continuing

Note: Due to data limitations, excludes MoroccoSource: Zawya Private Equity Monitor

Note: This graph does not reflect funds repaid to investors or management charges, both of which will reduce the cumulative funds under management. Due to data limitations, excludes Morocco.Source: Zawya Private Equity Monitor

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lackofbankfinancingavailableandlimitedaccesstoviablecapitalmarkets intheregionhavemeantthat

companiescontinuetoviewPEasanattractivesourceofcapital.Despitethis,theregionalPEindustryremains

significantlyunderpenetratedwithcumulativefundsraisedduringthepastdecadereachingaround1%of

2011GDPascomparedtoaround11%ofGDPinmoredevelopedmarketssuchastheUS,highlightingthe

industry’sstronggrowthpotential.

TheaveragecloseperfunddecreasedfromUSD141millionin2010toUSD62millionin2011.Thefollowing

tabledetailsmajorfundsthatsuccessfullyclosedduring2011.

Ofthe8newfundsannouncedin2011,3reachedsuccessfulcloses,raisingatotalofUSD254million.This

represented74%ofthecombinedinitialtargetsize(ITS)ofthesefundsand38%ofthetotalfundsraisedin

2011.Thefivefundsthatwereannouncedin2011thatdidnotmakeafirstclosehaveatotalITSofUSD742

million.

Oman’sfirstPEfund–theFINCORPOmanPrivateEquityFund–wassuccessfullylaunchedin2011.Thefund

intendstoencourageentrepreneurshipinOmanwithafocusonindustrialmanufacturing,petrochemicals,

infrastructure,healthcare,education,tourismandhospitality.

Note: ‘Other’ relates to funds raising in Morocco. Due to data limitations, all average calculations pertaining to funding exclude Morocco.Source: Zawya Private Equity Monitor and AMIC.

1Sources: Cumulative funds raised since 2001 in MENA: USD 23.2B (Source: MENA PE association current and past reports), GDP 2011 for MENA: USD 2.5 trillion (Source: IMF April 2012), Cumulative funds raised since 2001 in U.S.: USD 1.7 trillion (EMPEA annual reports), GDP 2011 for U.S. : USD 15 trillion (Source: IMF April 2012)

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2011sawanoticeableshifttowardsgrowthcapitalfunds,with6ofthe10majorfundsraisedduringtheyear

havingagrowthcapitalinvestmentfocus.Collectively,thesegrowthcapitalfundsrepresentUSD0.5billion

or81%offundsraisedduring2011(withanITSofUSD1.1billion).

Theriseofgrowthcapitalfundsin2011isareflectionofthesortofopportunitiesfundmanagersareseeing.

Inahighgrowthregionwherereturnsarecharacterizedbyearningsgrowthasopposedtoleverage,growth

capitalfundshavebecomeincreasinglypopularduetotheperceivedgrowthprospectsyieldinghigherreturns

andbettervalue.


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Afocusonmanagingexistingportfoliosandinvestingfundspreviouslyraised,coupledwithachallenging

fundraisingenvironmenthascausedmanyfundmanagerstoreducetheirITS.Consequently,in2011,there

wasashiftawayfromfundsgreaterthanUSD1billiontowardsfundswithITSofUSD500millionorlower.

WiththeexceptionoftheAbraajREDFund(ITSofUSD650million),allofthefundsthatsuccessfullyclosed

in2011hadanITSofUSD500millionorlower.

Nearlyhalfofthetotalactivefundsarecurrentlyintheprocessofinvestingwith30%stillraisingcapital.



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THOUGHTLEADERSHIP

Thought Leadership:

MENA Private Equity: The Shakeout is in the Numbers

Samer Khalidi, Director, NBK Capital

MuchhasbeensaidabouttheexpectedrationalizationoftheMENAprivateequity

industry following the global economic crisis and themany issues the region has

faced since 2008. Commentatorsmake reference to rumors of LP refusal to honor

commitments, investmentsbeingunderwaterandGPsbeingunable to raisenewfunds.Therehavebeen

visiblesignsofproblemsatsomefirmsandtheirportfoliocompanies,whichsupportthesuggestionthata

winnowingofthefieldisinprogress.However,thereisnoneedtospeculate,astheoutcomewillbeclearby

2013or2014.Whythislevelofcertainty?Itisinthenumbers.

Asshowninthisreport,75fundstargetingtheMENAregionwereraisedbetween2005and2008.Bytheend

of2013thecommitmentperiodofallofthesefundswillhaveexpired,withthebulkoftheseexpirations–59

infact–occurringby2012.Thatmeansthatanyofthemanagersthathavenotalreadyraisedmoneywillhave

toseekfundsbetween2012and2014,assumingtheyattempttheexerciseatall.Asparticipantsinwhatsome

callthepurestformofcapitalismintheworld,wewillseewhatverdictthemarketdeliversoneachandevery

memberofourcommunity.

Arelatedanalysispointstoasubstantialopportunityforthesurvivors.Fundsthatinvestedduringtheboom

willneedtostartdisposingofassetsasfundlifedeadlinesapproachandinvestorcallsforliquidityevents

increase.Alreadymany of the earlier vintage funds are bumping up to the end of their fund lives, even

accountingforextensions.

Again,lookingatthenumbers,weseethatatotalof317transactionsclosedfrom2006to2008.Overthenext

twotothreeyearstheseassetsmustcometomarketinonewayoranother.Whilethequalityandattractiveness

oftheassetsboughtduringtheboomareunclear,thereisnoquestionthattherewillbealargepoolofpotential

transactionsforthosefirmsabletotakeadvantageoftheopportunity.Inadditiontothevolumeofpotential

transactions,theconditionsareexpectedtobefavorable,asthesellerswouldbeundersignificantpressure

todisposeoftheassets.Takentogether,itwouldappearthatthesurvivorscouldenjoyasubstantialboostto

theiractivitiesoverthecomingyearsattheexpenseoftheirlesssuccessfulpeers.

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Theseremainingteamsthatalsofocusonthemiddlemarketwillalsobenefitfromtheeconomicrealitiesfacing

thissegment.Regionaleconomicactivityispickinguponthebackofdomesticandglobaleconomicrecovery.

However,manybusinessesareunabletotakeadvantageofthisimprovementastheirfinancialresourcesand

thoseoftheirownershavebeendepletedoverthepastfewyears.Normallyreluctanttolendtothissegmentat

thebestoftimes,banksareevenlesswillingtosupportthemtoday.Facedwithlimitedresourcesandnoaccess

todebt,businessownerswhowishtogrowmustraiseequityfromamuchdiminishedpoolofinstitutional

investors.NotonlyaretherefewerPEfirmstoengage,butbankshaveretreatedduetoregulatoryissuesand

largefamiliesarefocusedontheircorebusinessestoinvestactivelyelsewhere.Again,thefutureseemstooffer

anenvironmentofreasonabledealopportunitieswithdynamicsthatatleastdon’toverlyfavorsellers.

Thisbegstheobviousquestion:whowillthesesurvivorsbe?Atthispointanyanswerwouldbetheresultof

conjecturesinceperformancedataandotherindicatorsarenotavailable.Itisalsonotusefultotrytodescribe

thecharacteristicsofthepossiblesurvivors,asthiswouldbeanoverlygenericdiscussion(e.g.trackrecord,

stability).Whatisclearisthatthemarchoftimewillrevealstarklyandclearlywhoarethelastmenstanding.

Therearealsosignsthatthefutureforthismuchreducednumberofparticipantswillbeattractive.

Marketexpertsestimatebetween10%and30%ofPEinvestmentsintheregionareunannounced.Furthermore,

in some cases where investments are publicly announced, PE houses have not revealed the size of the

investment.Approximately30%oftheannouncedtransactionsinthelastdecadehavenotpubliclydisclosed

theirsize(26%in2011).

Further, in the absence of comprehensive information on the financing structures used by PE houses for

fundingtransactions,weareunabletoanalyzeandcommentonthedebt/equityfinancingstrategiesusedfor

structuringinvestments.Hence,dealsizesarereportedastotaltransactionsizeratherthanequityinvestment

bythefund.

3.3 INVESTMENTS

3.3.1 INFORMATION LIMITATIONS

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Despiteanumberofmacrochallengesintheregion,includingpoliticalinstability,thenumberofPEdeals

increasedslightlyfrom70to73in2011.

Fromtheinvestee’sperspective,PEinvestmentasameansoffundinggrowthcontinuestobeanattractive

methodofraisingfinanceandsecuringastrategicpartnership.Obtainingbankingfinancecontinuestobea

relativelycostlyformoffinanceforcompanies,inparticularSMEsandstart-upcompanies,whileaccessto

fundingfrommostcapitalmarketswithintheregioncontinuestobechallenging.

Forthetransactionswherereporteddataisavailable,theaveragesizeoftransactionsin2011decreasedfrom

2010.

However,itisimportanttonotethatthereweresomepotentiallysignificantinvestmentsmadeduring2011

forwhichthetransactionvaluehasnotbeenmadepublic,includingCarlyle’sacquisitionofa42%stakein

AlamarFoodsanda48%stakeinBahcesehirK-12Schools.

GPsintheregioncontinuetofundamentallybelievethatthereareattractiveinvestmentopportunitiesinthe

region.

3.3.2 INVESTMENTS MADE TO DATE

Source: Zawya Private Equity Monitor and AMIC.

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Moroccohoststhelargestnumberofinvestments,witha29%marketsharefrom2006,and36%in2011.When

analyzingthenumberoftransactionssince2006,wefindthatEgyptandtheUAEhaveenjoyedsimilardeal

volumes,with77and72 investments respectively.Wenote thatwhileSaudiArabiahas traditionallybeen

popular,with37investmentscompletedinthelastsixyears,onlyfivetransactionswerecompletedinthelast

twoyears.However,giventhesizeoftheeconomyinSaudiArabia(thelargesteconomyintermsofGDPin

theMiddleEast),thecountryisexpectedtobenefitfromsignificantPEinvestmentintheyearstocome.

Despitetherecentpoliticalinstability,Egyptwitnessedasignificantincreaseinthenumberoftransactionsin

2011(16transactions)ascomparedto2010(threetransactions).

TheUAEcontinuestobeapopulardestinationforfundmanagersand,giventhesizeanddynamicnatureof

theeconomy,itisunlikelythatthistrendwillchangegoingforward.

During2011,5%ofthetransactionsbyfundswhosemaingeographicalfocusistheMENAregioninvolved

targetcompaniesoutsideoftheMENAregion.ThemajorityofthesetransactionsweremadeinIndiaandthe

UnitedStates.

3.4 REGIONAL FOCUS

Source: Zawya Private Equity Monitor

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THOUGHTLEADERSHIP

Thought Leadership:

Realities of Investing in KSA: Opportunities and Difficulties

Haitham Al-Foraih, Vice President, Amwal AlKhaleej

With its immense resources, growing population and expandingmiddle class,

SaudiArabiaisincreasinglyappearingasacompellingregionalmarketforforeign

firms.EffortstoliberalizeandderegulatetheeconomyhaveearnedSaudiArabia

the11thrankinWorldBank’sEaseofDoingBusinessin2011rankingupfrom38thplacein2007.Whileat

the same time the share of thenon-oil private sectorhas seen substantial growth increasing from13%of

GDP in1970 to48% in2010.Theseeffortshave led to theKingdommore thandoubling its foreigndirect

investment(FDI)inflowbetween2005and2010(source:UnitedNation’sWorldInvestmentReport2011).The

vastpotentialcreatedbytheKingdom’sbuoyanteconomy,inadditiontobroad-rangingregulatoryreform

programs,hashelpedredefinethecountry’sbusinessenvironment.

Furthermore,withtheinstitutionofregulatorychangessuchasthemuch-anticipatedmortgagelaw,asolid

privatization pipeline and an increase in Public Private Partnerships (PPPs), many other sectors such as

healthcare,education,oilandgas,financialservices,infrastructure,andrealestatearelikelytoseeexponential

growthoverthenextfewyears.Thistrajectoryisfurthersupportedbynumerousgovernmentledinitiatives

aimedatstimulating theprivatesector’s interest indevelopingkeyunderpenetratedsectors.For instance,

the Saudi government provides qualified domestic companies with long-term interest-free financing to

developprivatehospitalsandschools.Thishastranslatedintoawealthofprimaryandsecondaryinvestment

opportunitiesinprivateeducationandhealthcare.

Furthermore, favorable demographics have also led to a surge in private consumption as theKingdom’s

populationcontinuestoexpandandpurchasingpoweramongtheyoungergenerationcontinuestorise.This

surge indisposable incomehasgeneratedagreatdeal of interest around investmentopportunities in the

Kingdom’shigh-growthretailmarket,whichhasbeenexperiencingextendedperiodsofstronggrowthand

isexpectedtoreachanestimatedUSD112billionby2015,fromUSD73.5billionin2011,accordingtoarecent

reportbyBusinessMonitorInternational.

2Figures are at 1999 constant prices (real terms, not nominal terms)

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WhilethereisundoubtedlymuchtobeexcitedaboutinSaudiArabia,thereremainsroomforimprovement

throughbothfasteradoptionofexistingreforms,andtheintroductionoffurthereconomicandlegalreform.

There is often a lag, and sometimes a discrepancy, between enacted reforms and their implementation in

practice. This is, however, being addressed in theKingdom,withmany government entities taking great

stridesinstreamliningtheirprocessestoenablequickadoptionofnewreforms,andmoreleadersfromwithin

theprivatesectorassignedkeypublicrolesandtaskedwithaddressingimplementationchallenges.

Smallandmedium-sizedenterprises(SMEs),akeydriverofdomesticcompetitionandjobcreation, isone

areathatshouldbeprioritizedinfuturereformagendasbypolicymakers.SMEscontinuetostruggletogain

accesstodebtfinancingatfavorableterms.Thisisprimarilyduetoacombinationofthebankingindustry’s

“name-based”andcollateralizedlendingpractice,andtheCentralBank’sconservativeloan-to-depositratio

requirements.Privateequityinvestorsarealsoimpactedbythisconservativebankingenvironment,asaccess

toacquisitionfinanceandcashflowlendingisrelativelytoughertosecurecomparedtoothermarkets

AlthoughthenarrowfundingoptionsforSMEsmakesprivateequityanattractivesourceofgrowthcapital,

many family businesses are yet reluctant to relinquish control due to pride and legacy considerations.

Furthermore,recentvaluationdisparitiesamongsellersandbuyers(relativetothepublicequitymarket)have

ledtoascarcityofwell-pricedgrowthcapitalopportunities.Finally,privateequityfundsneedtotakeinto

accounttheshareholderbaseoftheirinvestmentvehicleinordertoabidebyforeignownershiplimitationsas

wellastaximplications.

These challenges are being addressed in some form or other, with different expected timelines for their

resolution.Inthemeantime,SaudiArabiaremainsanattractivemarketwithauniqueoperatingclimate.Local

presenceandexpertiseremainsinvaluabletoasuccessfulSaudiinvestmentstrategy.

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The proportion of investments attributable to the technology, media and telecoms (TMT) and healthcare

sectorshasincreasedinrecentyears.TMTandhealthcarecollectivelyaccountedfor38%ofthetotaltransaction

volumein2011.ItisimportanttonotethatthemajorityofTMTtransactionswereventurecapitalinnature(12

outof14transactions),henceweresmallerintermsofinvestmentvalue.

Healthcarehasincreasedinpopularityoverthelasttwoyears,claiming9transactions.Thehealthcaresector

isvastandmadeupofmanydifferentindustries,frompharmaceuticalstohospitals.Thissectorcontinuesto

benefitnotonlyfromagrowingpopulationintheMENAregionandapercapitahealthcarespendatonly

about15%ofthatindevelopedmarkets,butalsoagrowingmiddleclasswithincreasingabilitytoinvestin

healthcareservices.Itisalsoconsideredtobeasectorrelativelyunaffectedbytheeconomicdownturn,and,in

somecountriesintheregion,hasbenefitedfromanincreasingscopeofobligatoryemployerhealthinsurance.

Retailhasalsoemergedasapopularsector,drivenbyhighgrowthandrisingconsumerdemandinmany

countries.Asexpected,thesectorsmostheavilyimpactedbytheglobalfinancialcrisissuchasconstructionand

realestatehavefallenbehind.Withinthe“others”category,thesignificantportionoftransactionscompleted

during2011isattributabletosectorssuchasconsumergoodsandeducation.

3.5 SECTOR FOCUS

Note: Due to data limitations, excludes AMIC dataSource: Zawya Private Equity Monitor

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THOUGHTLEADERSHIP

Thought Leadership:

Healthcare Sector – Operating challenges in a favorable macro environment

Amitava Ghosal, Partner, Al Masah Capital Limited and Board Member, Healthcare

Mena Limited

Ithasbeenwelldocumentedandwidelyaccepted that theMiddleEastandNorth

Africa(MENA)isanattractivemarketforhealthcareproviders.TheregionspentamassiveUSD71billion

(or4.1%ofitsGDP)onhealthcarein2010,comparedtoUSD27billionatthestartofthemillennium.Several

factors strengthen thebelief thatMENAwill continue tobeanattractivemarket forhealthcareproviders:

theregion’s increasingelderlypopulation;prevalenceofnon-communicableor“lifestyle”diseasessuchas

diabetes, cardiovascular ailments and cancer; growing aspiration for healthcare services of international

quality(anoutcomeofrisingincomeandliteracylevels);andintroductionofmandatoryhealthinsurancein

somepartsoftheregion.

However,forinvestorsandoperators,thereareissuestotackletotransformtheseopportunitiesintosuccess.

TheregulatorychangesthatareanticipatedtohappeninthenearterminsomeofthemajorlocationsinGCC

willpresentsomechallengesforhealthcareoperators.Therisingcostofhealthcareacrosstheglobeisleading

governments to increasinglyseek long-termsustainable solutions tomakehealthcaremoreaffordable.For

instance,theUS,whichspentUSD2.6trillion(or17.9%ofitsGDP)onhealthcarein2010,recentlypassedthe

healthcarereformbilltotackleburgeoninghealthcareexpenses.Thenewbillextendshealthinsurancetoall

uninsuredAmericans,providessubsidiestolow-incomeindividualsandfamiliestopurchasehealthinsurance,

andensuresthatinsurersdonotdenycoveragetothosewithpre-existingconditions.Somecountriesinthe

MENAregionarefollowingsimilarstrategiesandarelikelytoimplementtheAbuDhabimodelofcompulsory

insuranceforallresidents.Whilethiswillcontributetorisingdemandforhealthcareservices,thehealthcare

operators need to significantly enhance their systems andprocesses to allow for efficientmanagement of

theincreaseininsurance-relatedservices.Operatorsmustalsobepreparedtocomplywithnewregulations

regardingfairpricing,paymentcyclemonitoring,costefficiencyandethicalstandards.

1World Health Organization, International Monetary Fund, Al Masah Capital Research

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THOUGHTLEADERSHIP

A shortage of qualifiedmedical staff has also long been an issue in theMENA healthcare market. Staff

compensationcontinuestoriseconsiderably,especiallyforthebetterqualified.Hence,employeemanagement

andretentionisakeychallengeforhealthcareoperators,althoughtheintensityofthischallengevariesacross

markets.Thenatureofhealthcareservicesectorstaffingrequiresattentionfromtopmanagement,andshould

notbejusttheresponsibilityofahumanresourcedepartment.Incurrenttimes,staffingmaybethetopmost

priorityforhealthcareoperators,demandingthegreatestshareofmanagementattention.

Withmore competition coming especially in the large hospitals sector, availability of proper information

systems across all aspects of delivery andmanagement ofmedical care is gaining importance. There are

stillquiteanumberofmid-to-largescaleoperatorswhorelyonrudimentarysystemstoprocessallpatient

informationandarehesitanttoinvestinmoderntechnology.However,withincreasingcompetition,patients

willbedemandingfaster,moreefficientandbetterqualityserviceforwhichinvestmentinrobustITplatforms

isofstrategicimportance.

With the rapid changes happening in the medical field, one needs to be vigilant in looking for new

opportunities,aswellasrecognizingwheretechnologiesarebecomingobsolete.Forexample,onenoticeable

trendintheregionalhealthcaremarkethasbeenthegrowingshiftfromactivetreatmenttopreventivecare,

whichisopeningupahugemarketfordiagnosticcenters.Theuseofdiagnosticserviceshasrisennotably

intheregionduetotheagingpopulationandprevalenceofailments(suchasdiabetesandhighcholesterol

levels) that require continuousmonitoring and recurringmedical treatments.Moreover,with the number

oftestspercapitaintheMENAregionstillbelowinternationallevels,thereisclearpotentialforgrowthin

diagnosticcompaniesintheregion.

Insummary,thehealthcaresectorprovidesaveryfavorableenvironmentforinvestors.However,itisimportant

toappreciatethechallengesaheadinordertodeveloptherightstrategiesforsuccess.

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THOUGHTLEADERSHIP

Thought Leadership:

Investing in Education – Lessons Learned from the First Round

By Imad Ghandour, Managing Director, CedarBridge Partners

Theeducationsectoroffersauniquepropositionforinvestors:stickyandgrowing

demand, stable cash flow, positive cash cycle, and healthy margins. These

characteristicsbecamemorerelevantafterthefinancialcrisisasinvestorpreferdefensivesectorswithstability

andpredictability.

Privateequity investors inMENAwanted to follow the same trend,and fundmanagers tried to focuson

educationandotherdefinitivesectorspost-crisis.Educationinparticularseemedtobenefitfromfavorable

demographics, increasing disposable income, a shift from public to private education, and huge fiscal

expenditure.

However,theeducationsectorinparticularremainedelusivetoprivateequity.Onlyfewtransactionswere

registered.Fundmanagerscomplainedthattherearefewdealsavailable,andthoseavailablewerefullypriced.

Moreover,thosethatinvestedinthesectorfacedtheinevitablescrutinyattachedtosocialservices,limiting

theirmaneuverabilityintermsoftuitionincreases,newlicenses,newservices,andevenexitpossibilities.The

mediaandtheregulatorsareincreasinglydebatingprivateequity’sroleineducation.

Yet, familygroupscontinuetoreapsignificantdividendsfromtheeducationsectors. As Ihaveexamined

hundreds of investment opportunities in the sector, I have invariable noticed how lucratively the initial

investorshavebeenrewardedandhowsignificantthebusinessmarginswere.Hence,theproblemmaynot

bewiththesector,butwiththestandardprivateequityapproachwheninvestingineducation.

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THOUGHTLEADERSHIP

Inmyview,privateequityinvestorshavetakenhomelessonsfromitsfirstroundofinvestments:

• Thinklongterm:thetraditionaltimeframeofaprivateequityinvestmentof3to

5yearsseemsunfitforeducationbecauseyoucanonlyaffectchange(e.g.increase

tuition,openanewbranch)onceayear.

• Focusoncapacitybuildingbeforemarginimprovement:privatecapitalismost

welcomedwhenitinitiallyseekstobuildnewcapacity.Focusingintheearly

stagesontuitionincreasesandmarginimprovementbringsunwantedfriction.

• Enterearly:enteringattheearlystagesofthebusinesslifecycleallowsyoutobe

rewardedbythegrowthinenrollment,whichremainsthehighestcontributorto

profitgrowth.Thiswillalsoincreasetheinvestiblespace.

• Talkeducationbeforefinance:dropthefinanciershatandtalkabouteducatingthe

kids.Also,private-equitersarekeentopublicizetheirachievementsandtheir

investments,butthisisasectorwherelesstalkwillimprovereturns.

• Lookatothersubsectors:K-12maybethebiggestsubsector,butothersubsectors

likenurseries,e-learning,highereducation,etcmaybemorelucrativeand

attractive.

Educationremainsanattractiveandgrowingsector,butasectorthathasitsoperationalparticularitiesand

socialsensitivities.Thesecondroundofinvestmentsmaybenefitfromtheseexperiencesandyieldevenbetter

outcomes.

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Similar to thedata limitationsmentionedpreviously inrelationto investments,asignificantportionofPE

divestmentsareeitherunannouncedor,wherethedivestmentisannounced,thevalueisundisclosed.Asa

result,wehavefocusedonanalyzingthenumberofdivestmentsasopposedtothetotalvalue.

2011sawasignificantincreaseinthenumberofdivestments(30divestments)comparedtorecentyears(23

divestmentsin2010).

However,despiteanincreaseindivestments,theimpactoftheglobalfinancialcrisisonliquidity,valuations

andinvestorappetitehasresultedinlongerthananticipatedholdinghorizonsforprivateequityinvestments.

ThePE industryhas increased its focus in recent years tomaximizingvaluewithin theportfolio through

strategicandoperationalperformanceimprovements.Goingforward,andastheregionaleconomiesstabilize

andliquidityinthemarketimproves,onewouldexpectafurtherincreaseinthenumberofdivestments.

Tradesalestoothercompaniescontinuetobethemostpopularexitstrategyandinmostinstances,theystill

offeramoreviableexitthanapublicmarketexit,duetothelackofliquidityinmostregionalmarkets.

3.6 EXITS

Source: Zawya Private Equity Monitor and AMIC.

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THOUGHTLEADERSHIP

Thought Leadership:

Private Equity and the Arab Spring

Saad Zaghloul, Managing Editor, Alborsa newspaper

Numerousarticlesandbookshavebeenwrittenabout theshockingrevolutions

thatstormedtheArabworldin2011.Mostofthesewritingsarepoliticalinnature.

Veryfewhavewrittenaboutthe impactof theArabSpringforrisk-takers.Veryfewhavehighlightedthe

lifetime opportunity theArab Spring has revealed for patient investors. However, today, this enormous

opportunityisunfoldingforthosewhohavethevisiontograbit.

ThisisexplainedtakingoneexamplefromthelargestArabSpringcountry:Egypt.

Egypt’srevolutioncameasashockforeveryone.Ifwefocusonthebusinessandinvestmentcommunity,the

revolutionre-setallpre-setbusinessplansandinvestmentprojections.Egypt’seconomicboomhadalready

beenimpactedbytheeffectsoftheglobaleconomiccrisisbeginningtwoyearsearlier,withRealGDPgrowth

decliningfrom7.2%to5.1%in2010.

In the midst of revolution, Egypt’s economy still managed to record positive growth in 2011 of 1.8%.

Astonishingly,thisrateexceededtheMENAoilimportersaverage,whichrecorded1.4%.However,Egyptis

consciouslyawarethatthecostofitsrevolutionwillextendthrough2012,withprojectedGDPgrowthatjust

1.6%.

TheEgyptianstockmarkethasalsosufferedseverecapitalflightbybothforeignandArabinvestors,receiving

thedubiouslabelin2011of“theworld’sworstperformingmarket”.Egypt’sboursedroppedby49%in2011

anddailyvolumeshitrecordlows.

Asnegativescorespoured in fromthe ratingagencies, EgyptianT-billsandT-bondsrates rose to record

highs,makingitmoreandmoredifficultforEgypttoraisedebtandattractinvestment.

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THOUGHTLEADERSHIP

Whenwereflectonhowtherevolutionhasaffectedinvestmentdecisions,wefindthatithastakenallofthe

politicaluncertainty–whichhadconcerned investorsbefore therevolution– and forced it tomove from

thefuturetothepresent.Thisisnotactuallyabadthingforinvestment.Riskisfriendliertoinvestorsthan

uncertainty.Investorscanpricerisk,whiletheyfindithardtoputapriceonuncertainty.

Egyptdecidedtoanswerallitspoliticalwhat-ifquestionsin2011and2012,resultinginaclearer,morestable

politicalsystem.ThisisaverydifferentviewtotheimpactoftheArabSpring.

Overall,Egyptisnottherightplaceforashort-termorientedinvestor.Egyptistheidealplaceforapatient

long-terminvestor.

39

4 SURVEYOFGPsINTHEMENAREGION

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SURVEYOFGPsINTHEMENAREGION

4 SURVEYOFGPsINTHEMENAREGION4.1 INTRODUCTION

ThesurveyfocusesonGPsintheMENAregion.Thesurveyconsistedof36questionsandwasconducted

duringthefirstquarterof2012.Theaimofthesurveywastoobtainagreaterunderstandingofthesentiments

oftheMENAregion’sprivateequityindustryfromtheperspectiveofGPs.

Methodology

The surveywaspreparedbyZawyaandwas conductedonlinewithparticipation fromrepresentativesof

26private equityhouses in theMENAregion (including the top tenprivate equityfirmsby fundsunder

management).Participatingfirmshadinvestmentsinarangeofindustriesacrossawidegeographicalspread.

Scope of the survey

Thesurveylooksbrieflyattheimpactoftheeconomicdownturnandpoliticalinstabilityintheregionduring

2010-2011,andaimstounderstandGPexpectationsandviewsaroundtheoutlookfor2012.

Profile of the respondents

Halfoftherespondentsestablishedtheirprivateequityfirmswithinthelastfiveyears,withapproximately

aquarterbeinglessthanfouryearsold.TheprivateequityindustryintheMENAregionisrelativelyyoung

byinternationalstandards.65percentofparticipatingfirmshavelessthan$500millionworthofassetsunder

management.

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When was the company established?

WhiletheprivateequityindustryintheMENAregionisstillnascentcomparedtomoredevelopedmarkets,

morethanhalfoftheparticipatingprivateequityfirmshavebeeninoperationforfiveormoreyears.It is

interestingtonotethatdespitetheimpactoftheglobalfinancialcrisisandpoliticaluncertaintyintheregion,

threeoftherespondentfirmswereestablishedduring2011.

Who owns the fund management company?

73percentofrespondentsstatedthatmanagementholdsownershipinthefundmanagementcompany,with

onethirdofthosebeingamajorityshare.

4.2 SURVEY RESULTS4.2.1 RESPONDENT PROFILE

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How many funds have you managed since establishment?

Giventherelativeyoungageoftheprivateequityindustryintheregion,itisnotsurprisingthat42percentof

respondentshavemanagedjustoneortwofundstodate.

What is the total value of assets under management?

45percentofrespondentshadlessthan$250millionworthofassetsundermanagement.

Greaterthan5

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How many companies are there in your portfolio?

Withhalfoftheprivateequityfirmsintheregionhavingbeenestablishedforfiveyearsorless,itislogicalto

expectthemajorityofrespondents(58percent)tohavefewerthantencompaniesintheircurrentportfolio.

Do you expect the economic situation to: improve/decline/status quo/unclear

Respondents were fairly optimistic with almost half of the respondents anticipating improved economic

conditionsduring2012.38percentoftherespondentswereeitherunclearintermsoftheeconomicoutlook

orbelievedthatthecurrenteconomicsituationwillcontinue,and16percentbelievedtheeconomicsituation

wouldworsen.

4.2 .2 OUTLOOK

NotDisclosed

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What do you expect to be the main challenges during 2012?

Fundraisinghasprovenchallengingsince2009and42percentofrespondentswereoftheviewthatthiswill

remainachallengefortheindustryin2012.Justoverahalf(54percent)ofrespondentsanticipatedfinding

newinvestmentopportunitiesandexitingofexistinginvestmentstobekeychallengesfortheindustryin2012.

What are the main challenges in 2012 for the MENA Private Equity Industry?

Whilstnooneresponsestandsout,37%ofrespondentsbelievethat‘findingtherightdealattherightprice’

(qualityofdealflow,highvaluationsandacceptanceofPEfundsaspartners)willbeakeychallengeduring

2012. 40% of respondents aremore concerned about ‘portfolio level issues’ (corporate governance, bank

financing,growthprospectsandlackofcontroloverdeals).

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In 2012…

38 percent of respondentswere not confident in LPsmeeting their expectations in 2012,while 35%were

confidentthatLPexpectationswouldbemet.50%oftherespondentsbelievethatvaluationswillbelowerin

2012comparedto2011.Lowervaluationsmaypotentiallyofferattractiveinvestmentopportunitiesbutmay

alsopotentiallyhaveanimpactontimingofexits.

What will managers focus on during 2012?

During2011,fundmanagersprimarilyfocusedonmanagingexistingportfolios.Astheinvestingandeconomic

environmentimproves,themajorityofrespondentsbelievefocuswillshifttowardsfindingnewinvestment

opportunitiesandexitingcurrentinvestments.

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What is the most important attribute for a private equity firm to win a deal?

The existence of a good network is seen by a large proportion of respondents (46 percent) as the most

importantattributerequiredtosuccessfullycompleteacquisitionsintheregion.Thisispresumablylinkedto

thechallengesinsourcingdealsashighlightedbymanyrespondents.Flexibilityonacquisitiontermstogether

withmanagementandoperationalexpertiseareconsideredbymanytobemostimportant.

During 2011, how do you view entry multiples?

Opinionswereequallysplitonwhetherentrymultiplesduring2011weretoohigh.Thisreflectsanarrowing

intheexpectationsgapbetweensellersandinvestorsinrelationtothevaluationoftargets.During2010,58

percentofrespondentsfeltthatentrymultiplesweretoohigh.

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How many entry deals do you expect to see in 2012?

Thevastmajorityofrespondentsexpect2012tobearelativelyquietyearintermsofdealactivity.

What types of deals are expected to take place in 2012?

Almosthalfofrespondents(49percent)believethatgrowthandventurecapitalinvestmentswillcontinueto

bepopularin2012.Itisinterestingtonotethat27percentofrespondentsexpectbuyoutdealstobepopular

in2012whichisincontrasttolastyear’ssurveywhichsawjust8percentofrespondentsexpectingbuyout

dealsin2011.

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In your opinion, what will be the average deal size in 2012?

Themajority of respondents anticipate the averagedeal size in 2012 to bebetween $20million and $40

million.Thismarksanincreaseonactualaveragedealsizein2011.

How many funds do you expect to be launched/raised in 2012?

Thevastmajorityofrespondentsremaincautiousaboutfundraisingprospectsfor2012andbelievethat

fewer thanfive fundswillbesuccessfully launched.Thisexpectation is in linewith2011’sactual results

whichsawsixfundssuccessfullylaunchingandraisingduringtheyear.

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In your opinion, what will be the main source of funds for new funds launched in 2012?

Inlinewithlastyear’ssurvey,themajorityofrespondents(64percent)expectfundstocomefromwithinthe

regionthroughhighnetworthindividuals,institutionalinvestorsandSovereignWealthFunds.

If you plan to launch a new fund, what would be the fund type and target market?

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Growthcapitalfundscontinuetobethepreferredtypeoffundfor35percentofrespondents.Thisfurther

reflectstheincreasingpopularityofgrowthcapitalfunds.

Incontrasttolastyear(25percentin2010),35percentofprivateequityfirmsintheregionperceiveinternational

institutionalinvestorsasthetargetmarketforfundstobelaunched.Thisisinlinewiththeexpectationof42

percentofrespondentsthatinternationalinvestorsareseeingvalueandseekingopportunitiestoinvestin

theregion.

In your opinion, what will be the average size of funds raised in 2012?

92percentofrespondentsexpecttheaveragesizeofnewfundsraisedin2012tobelessthan$250million.45

percentofallfundsraisedduring2011hadanITSoflessthan$500million.

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In your opinion, what will be the holding period of private equity investments?

Themajorityofrespondents(84percent)believethatfirmswillholdontoinvestmentsforfouryearsor

more,whichisinlinewiththetypicalinvestmentholdingperiodforprivateequityfirms.

What is the most important role of private equity firms in their portfolio companies?

Privateequityfirmsseestrategicplanningasthemostimportantroletoprovidetoportfoliocompanies.

This isadeparture fromthe2010survey inwhich themajorityof respondents (29percent)viewedthe

provisionofoperationalsupportasthemostimportantrole.

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What will be your target IRR in 2012?

Thevastmajority(65percent)offundmanagersaretargetinganIRRbetween20and29percentfor2012.

Thisisinlinewithresponsesreceivedduringthelasttwoyears(63percentfromthe2010surveyand64

percentfromthe2009survey).

What will be the most attractive exit routes during 2012?

Inlinewithlastyear’ssurvey,tradesalescontinuetobethemostattractiveexitstrategyamongstfund

managerswhilefinancialsales,IPOsandmanagementbuybacksareconsideredlessattractive.

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Regions of interest

Despitetheimpactoftheeconomiccrisisandrecentpoliticaluncertainty,theMENAregioncontinuestobe

thefocusofprivateequityfirmsintheregion.Thisisprimarilybecauseoftheregion’slargeandgrowing

population,growingmiddleclass,increaseinpercapitaincome,continuingdemandforinfrastructureand

highgovernmentspendingbudgets.

What sectors were private equity firms interested in during 2011?

In linewith2010’s survey results,privateequityfirmscontinue to focusonnon-cyclicalanddefensive

sectorssuchashealthcare,FMCGandeducation.

4.2.3 REGIONS AND SECTORS OF INTEREST

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How did the global economic turmoil impact the private equity industry in the MENA region?

Withtheglobaleconomicenvironmentlimitingopportunitiesforinvestmentinstagnantwesterneconomies,

42percentofrespondentsfeelthatinternationalprivateequityfirmswilllooktotargettheMENAregion.

Is the political uncertainty in the region affecting investment decisions in terms of sector focus?

Themajorityof respondents (58percent)believe thatpoliticalunrest in the region isnot impacting their

investment decisions in terms of sector focus.Manywere already focused onmore defensive sectors in

responsetotheeconomicsituation.

4.2.4 THE IMPACT OF THE FINANCIAL AND POLITICAL CRISIS

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How is the political shakeout impacting investment decisions in countries with unrest?

Politicaluncertaintyintheregioncontinuestoencourageastrategyofdelayinginvestmentsinthecountries

withunrest.andbeingincreasinglyselectivewithinvestmentopportunities.

56

5 ABOUT THE MENA PRIVATE EQUITY ASSOCIATION & AMIC

ANNUALREPORT

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MENA PRIVATE EQUITY ASSOCIATION

MENA Private Equity Association

TheMENAPrivateEquityAssociation is anon-profit entity committed to supportinganddeveloping the

privateequityandventurecapitalindustryintheMiddleEastandNorthAfrica.

TheAssociationaimstofostergreatercommunicationwithintheregion’sprivateequityandventurecapital

networkandfacilitateknowledgesharinginordertoencourageoveralleconomicgrowth,andwillactively

promotetheindustry’ssuccessestolocalstakeholdersandbuildtrustwithinvestors,regulatorsandthepublic

regionallyandinternationally.

www.menapea.com

ANNUALREPORT

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AMIC

MOROCCAN VENTURE CAPITAL & PRIVATE EQUITY ASSOCIATION (AMIC)

Foundedin2000,AMICisanindependentprofessionalassociationwhosemissionistounite,representand

promotetheprivateequityprofessiontolocalandinternationalinvestors,entrepreneursandgovernmental

bodies.

AMIC’smainmissionistostrengthentheprivateequityindustry’scompetitivenessinMoroccoandabroad

through:

•Effectiveandclearcommunicationontheprivateequityindustry

•ExecutingreliablereportsandsurveysonthestateofprivateequityinMorocco

•Activeparticipationindiscussionsonanydraftlawregulatingthesector

•Establishingagoodgovernanceandethicscodefortheprivateequityindustryandpromoting

compliancewithsuchcode

•Providingsupportservicestomembersonregulatoryissuesrelatedtotheprofession

•Developmentofaqualitytrainingprogramonallaspectsoftheprivateequityindustry

Contact:FrançoiseGiraudon–[email protected]

Address:23,BoulevardMohamedAbdou(siègeCGEM)–QuartierPalmier–20340Casablanca-Maroc

59

6 SPONSOR PROFILES

ANNUALREPORT

60

Zawya is the leading online business intelligence platform focusing on theMiddle East &NorthAfrica,

enablingnearly1millionprofessionalstofindandconnecttotherightbusinessandinvestmentopportunities

intheregion.

Ourwiderangeofuniquecontentandtoolsincludedetailedprofilesonthetopcompaniesandprojectsinthe

MiddleEastandNorthAfrica,ZawyaDowJoneslivenews,comprehensiveindustryandassetclassresearch,

aswellasanexclusiveonlinenetworkforprofessionalsfocusingontheregion.

Formoreinformation,pleasevisitwww.zawya.com

ZAWYA

ANNUALREPORT

61

ABRAAJ CAPITAL

TheAbraajCapitalgroupisaleadingprivateequitymanagerinvestingingrowthmarkets.Sinceinception

in2002,thegrouphasraisedoverUS$7billionanddistributedinexcessofUS$3billiontoinvestors.With

overUS$6billioninassetsundermanagement,thegrouphashelpedaccelerateandfacilitatethegrowthof

morethan50companiesin15countriesintheMiddleEast,NorthAfricaandSouthAsia(MENASA)regionin

sectorsasdiverseashealthcare,education,energy,aviationandlogistics.

Employing over 95 investment professionals, the group is headquartered inDubai andhas a presence in

Algiers,Amman,Beirut,Cairo,Casablanca,Istanbul,Karachi,London,Mumbai,Ramallah,Riyadh,Singapore

andTunis.FundsmanagedbytheAbraajCapitalgrouphaveholdingsinover35companiesincludingAir

Arabia,theMiddleEast’sleadinglowcostcarrier,NetworkInternational,thelargestindependentpayment

solutionsproviderintheMiddleEastandAfrica,IHHHealthcareBerhad,oneofthelargestprivatehealthcare

groupsingrowthmarketsandAlBorgLaboratories,theMiddleEast’slargestprivatelyownedmedicaltesting

laboratory.

In2011,AbraajCapitalwasrankedthelargestprivateequityfirminemergingmarketsworldwidebyPrivate

EquityInternational.Inaddition,AbraajCapitalhaswonmanyregionalandinternationalawards,including

the‘MiddleEasternPrivateEquityFirmoftheYear’forsevenconsecutiveyears,awardedbyPrivateEquity

International.

WiththecompletionoftheAureosCapitalacquisitionin2012,AbraajCapitalhasapresenceinmorethan

30 countries across growth markets, over 150 investments managed by a dedicated team of investment

professionalsandapproximatelyUS$7.5billioninassetsundermanagement.

AbraajCapitalLimited,amemberof theAbraajCapitalgroup, is licensedbytheDubaiFinancialServices

Authority(DFSA).

ANNUALREPORT

62

AFRICINVEST-TUNINVEST

AfricInvest-TunInvestGroupwasfoundedin1994andispartofaninvestmentandfinancialservicesgroup:

Integra Partners (www. integrapartners.com). Integra Partners offers Private Equity, Brokerage, Asset

ManagementandCorporateFinanceservices.

AfricInvest-TunInvestGroupisoneoftheleadingprivateequityfirmsinNorthandsub-SaharanAfricawith

over$700millionoffundsundermanagementacross11PEfundssponsoredbyprestigiousDFIs,international

privateandinstitutionalinvestors.

ThecoveredandtargetedregionevolvedduringthelifeoftheGroupfromTunisiaforthefirstgenerationof

fundswithrelativelysmallinvestments,totheMaghrebregion(MaghrebPrivateEquityFundsI,II&III)and

Sub-SaharanAfrica(AfricInvestFundsI&IIandAfricInvestFinancialSectorFund)withlargerinvestments.

AfricInvest-TunInvest Group has today over 17 years of experience in impact investments in SMEs and

supportedover100SMEsinAfrica.

TheGroupreliesonateamof40investmentprofessionalswithover120yearsofcumulativePEexperience,

operatingoutof6offices:Tunis,Abidjan,Algiers,Casablanca,LagosandNairobi.

AfricInvest-TunInvestGroupisaco-founderandactivememberoftheAfricanVentureCapitalAssociation

(www.avcanet.com),theMENAPEAssociation(www.menapea.com)andtheEuromedCapitalForum(www.

euromed-capital.com).

ANNUALREPORT

63

NBK CAPITAL

NBKCapital isa leading investmentcompanyestablished in2005by theNationalBankofKuwaitoneof

theMiddle East region’s oldest and highest rated banks. NBKCapital delivers its products and services

throughfourprincipallinesofbusiness:AlternativeInvestments,AssetManagement,Brokerage&Research

andInvestmentBanking.Withover170professionalsandofficesinKuwait,Dubai,IstanbulandCairo,NBK

Capital’slocalknowledgeandexpertiseallowsthefirmtodeliversuperiorresultstoinvestorsandclients.

TheAlternativeInvestmentsGroupatNBKCapitalmanagesc.USD550millioninassetsundermanagement

focusedongrowthcapital formid-market companies located throughoutMENAandTurkey.Thegroup’s

trackrecordincludesprivateequityandmezzanineinvestmentsacrosstheRegioninSaudiArabia,Kuwait,

Qatar,UAEandTurkey.Leveragingahighlyskilledinvestmentteam,NBKCapitalhasdeliveredvaluefor

investorsthroughanactiveinvestmentapproachimplementingstrategic,operationalandfinancialinitiatives

atportfoliocompanies.

ANNUALREPORT

64

QATAR FIRST INVESTMENT BANK

QatarFirstInvestmentBank(QFIB)isapioneeringIslamicfinancialinstitutionprovidingafull-fledgedsuite

ofinvestmentbankingserviceswellpositionedtoworkacrossthebroaderMENAregion.TheBanklaunched

in2009withanauthorizedcapitalofQAR3.65billion(US$1bn)andapaidupcapitalofQAR1.6billion(US$

430million)providingthefinancialstrengthtocapitalizeonlucrativeinvestments.

QFIB is the first independent Shari’ah compliant investment bank licensed by theQatar FinancialCentre

RegulatoryAuthority(QFCRA)andisISO27001certified,offeringPrincipalInvestments,AssetManagement

andCorporateFinanceAdvisoryservices. QFIB’sdynamicbusinessstrategy isdrivenby itsmanagement

teamwithanentrepreneurialoutlookthatencouragesinnovationandcreativityinmeetingclientneeds.The

Bank’smediumtolong-termviewensuresclientscanbenefitfromtheleadership’sinsightandconnectionsin

providingstrategicadvice,raisingcapitalanddeliveringriskmanagementsolutions.

QFIB is unique in Qatar, simultaneously independent and central to the market, providing clients and

counterpartieswithaccesstooneoftheregion’sdeepestpoolsofcapital.Adoptinganinvestmentstrategy

thatcentersonsectorandgeographicaldiversification,QFIB’sfocusareasincludeenergy,financialservices,

industrials,realestate,andhealthcareservices.QFIBinvestsinbusinessesthatmaximizeshareholdervalue

throughrobustgrowthandsignificantcapitalappreciation.Sinceinception,QFIBhasexecutedanumberof

transactionsin–fivedifferentsectorsacrossthreegeographies,andsuccessfullyexitedtwoinvestments.

ReaffirmingitsstatureasagrowingShari’ahcompliantinvestmentbank,QFIBaimstolistitssharesonthe

QatarExchangeinQ42012.Thismovewillprovideexistingshareholderswiththeabilitytotradetheirshares

and,further,willprovideQFIBthemeansandcapitaltorealizeitsgrowthplans.

QFIBwasrecognizedasthe“BestInvestmentBankintheGCC”underIslamicBusiness&Financecategory

byCPIFinancialin2011andhaswontheaccoladeofthe“BestFinancialServiceIndustryDeploymentofthe

Year”byComputerNewsMiddleEast.

ANNUALREPORT

65

SWICORP

Swicorpisaleadingcorporatefinanceadvisory,privateequityandprincipalinvestmentfirmwithaspecific

regionalfocusontheMiddleEastandNorthAfrica(MENA)region.

Foundedin1987andlicensedbytheCapitalMarketAuthorityoftheKingdomofSaudiArabia,andtheDubai

FinancialServiceAuthorityoftheUnitedArabEmirates,Swicorphasanextensivetrackrecordofpioneering

M&AandAdvisorytransactionsacrosstheMENAregionoverthelast20years.HeadquarteredinRiyadh

withregionalofficesinJeddah,Geneva,Tunis,DubaiandAlgiers,thefirmhasover100employeesacrossits

officesandactivities,including30privateequityprofessionalsfrombothwithinandoutsidetheregion.

Sincethelaunchofitsprivateequityactivitiesin2004,Swicorphasestablisheditselfamongtheleadingprivate

equitymanagersintheMENAregion,withnearlyUSD1.4billioncurrentlyundermanagementacrosstwo

separateinvestmentprograms,includingIntajCapitalandSwicorpJoussour.

Intaj Capital is a pan-MENA focused private equity fund investing in companies operating in sectors

drivendirectlyor indirectlybygrowth inconsumerdemand.Sectors includeconsumergoods,retail, food

and beverage, media and communications, consumer financial services, healthcare and consumer-facing

constructionmaterials,amongothers.Intajpursuestwomaininvestmentstrategiesforbuildingaplatformof

valuecreationinitsportfoliocompanies:growthandbuy&buildinvestments.IntajCapitalI,thefirstfund

launchedin2005,investedUSD187million,USD290millionincludingco-investmentsfromlimitedpartners,

ineightinvestmentsacrosssevencountries,welldiversifiedintermsofbothgeographiccoverageandsectors.

IntajCapitalII,whichrepresentsthesecondprivateequityvehicleoftheIntajfranchise,hadafirstclosingin

September2010withcommitmentsfromleadinginternationalinstitutionalLPs.

Joussourwas founded in 2005withUSD1billion in capital commitments. Joussour focuses on large-scale

investmentsintheenergysector,petrochemicalsandancillarybusinessestothepetrochemicalindustry,and

energy-intensive sectors, through greenfields and joint ventures with international partners or buy-out/

relocationofinternationalplayersinthesector.

66

7 MEMBERS DIRECTORY

ANNUALREPORT

67

MEMBERS DIRECTORY

AbraajCapital

Dubai,UAE

Egypt,Jordan,KSA,Lebanon,

Pakistan,Singapore,Turkey,Palestine

Tunisia,Algeria,Morocco,London

+97145064400

[email protected]

www.abraaj.com

AfricInvest-Tuninvest

Tunis,Tunisia

Algeria,IvoryCoast,Kenya,

Morocco,Nigeria

+21671189800

[email protected]

www.tuninvest.com

AlMasahCapital

Dubai,UAE

Kuwait

+971-4-453-1500

[email protected]

www.almasahcapital.com

AmwalAlKhaleej

Riyadh,KSA

Egypt,UAE

+96612164666

[email protected]

www.amwalalkhaleej.com

MEMBERS DIRECTORY7CapitalTrustGroup

Beirut,Lebanon

UK,USA

+9611368968

[email protected]

www.capitaltrustltd.com

CedarBridgePartners

Cairo,Egypt

UAE

[email protected]

www.cedar-bridge.com

CitadelCapital

Cairo,Egypt

Algeria,Kenya

+20227914440

[email protected]

www.citadelcapital.com

DubaiSiliconOasisAuthority

Dubai,UAE

+97145015206

[email protected]

www.dso.ae

EastgateCapitalGroup

Dubai,UAE

+97143297171

[email protected]

www.eastgategroup.com

ANNUALREPORT

68

MEMBERS DIRECTORY

EmergingCapitalPartners(ECP)

Tunis,Tunisia

IvoryCoast,Cameroon,France,Morocco,

Nigeria,SouthAfrica,WashingtonDC

+216-71-962-590

[email protected]

www.ecpinvestments.com

EFGHermesPrivateEquity

Cairo,Egypt

UAE

+97143641961

[email protected]

www.efg-hermes.com

GulfCapital

AbuDhabi,UAE

+97126716060

[email protected]

www.gulfcapital.com

InternationalFinanceCorporation(IFC)

Washington,DC,USA

+1(202)473-3800

www.ifc.org

InvestcorpBank

Manama,Bahrain

UK,USA

+97317532000

www.investcorp.com

MalazCapital

Riyadh,KSA

+96614601644

[email protected]

www.malazcapital.com

MasdarCapital

www.masdar.ae

MubadalaGECapitalPJSC

AbuDhabi,UAE

+97124013108

[email protected]

www.mubadala-ge.com

NationalBankofAbuDhabi–PrivateEquity

AbuDhabi,UAE

+97126112268

www.nbad.com

NBKCapital

Kuwait

Egypt,Turkey,UAE

+96522246900

[email protected]

ww.nbkcapital.com

N2V

Egypt,Jordan,KSA,UAE,USA

+971552100706

[email protected]

www.n2v.com

ANNUALREPORT

69

MEMBERS DIRECTORY

NewSilkRoute

Dubai,UAE

India,USA

+97143211772

[email protected]

www.nsrpartners.com

QatarFirstInvestmentBank

Doha,Qatar

+9744483333

[email protected]

www.qfib.com.qa

ReAyaHolding

Jeddah,KSA

+96626676777

[email protected]

www.reayaholding.com

RiyadaEnterprise

Development

Dubai,UAE

Egypt,Jordan,Lebanon,Palestine

+97145064400

[email protected]

www.riyada.com

SEDCO

Jeddah,KSA

UAE

+97143637166

[email protected]

www.sedco.com

Swicorp

KSA,UAE,Tunisia,Algeria,

Switzerland

+96612110737

[email protected]

www.swicorp.com

TVMCapital

Dubai,UAE

Germany,USA

[email protected]

www.tvm-capital.ae

70

8 PRIVATE EQUITY & VENTURE CAPITAL FIRMS IN MENA

ANNUALREPORT

71

PRIVATE EQUITY & VENTURE CAPITAL FIRMS IN MENA

PRIVATE EQUITY & VENTURE CAPITAL FIRMS IN MENA8AbraajCapital

AbuDhabiCapitalManagement

AbuDhabiInvestmentCompany

AbuDhabiInvestmentHouse

AcceleratorTechnologyHoldings

ADCBMacquarieCorporateFinance

AlImtiazInvestmentCompany

AlMalCapital

AlMasahCapitalManagementLimited

AlcazarCapitalLimited

Amundi

AmwalAlKhaleejCommercialInvestment

Company

ArbahCapital

AttijariwafaBank

AureosMoroccoAdvisers

BeltoneAgricultureManagement

BeltonePrivateEquity

Berytech

BMACapital

BMCECapital

CapitalInvest

CapitalTrust

CapivestInvestmentBank

CarlyleMenaInvestmentAdvisorsLimited

CatalystInvestmentManagementCompany

CDGCapital

CedarBridgePartners

CERTCapital

CitadelCapital

ConcordInternationalInvestments

CorporateFinanceHouse

DamanInvestments

DBClimateChangeAdvisors

DeltaPartners

DeutscheBank

DubaiIslamicBank

EastgateCapitalGroup

EducationCapital

EFG-HermesPrivateEquity

EmergingCapitalPartners

EmergingMarketsPartnership(Bahrain)

EVICapitalPartners

EvolvenceCapital

Fincorp

FoursanGroup

GlobalCapitalManagementLimited

GulfCapital

HBGHoldings

HSBCPrivateEquityMiddleEastLimited

IdeaVelopers

InjazatCapital

InstrataCapital

IntelCapital

InvestcorpBank

ITVentures/NileCapital

IthmarCapital

KIPCOAssetManagementCompany

KuwaitFinanceandInvestmentCompany

KuwaitFinanceHouseBahrain

KuwaitFinancialCentre

LevantCapitalLimited

MalazCapital

MasdarVentureCapital

MerchantBridgeandCo

MiddleEastCapitalGroup

ANNUALREPORT

72

MiddleEastVenturePartners

MoroccanInformationTechnoparkCompany

NationalBankofAbuDhabi–PrivateEquity

NBKCapitalLimited

UplineInvestments

UnicornInvestmentBank

VentureCapitalBank

ViverisManagement

PrimeCorp(France)

QatarCapitalPartners

RAIS(Netherlands)

RasmalaHoldingsLimited

RiyadaEnterpriseDevelopment

RivayGarciaFinancialGroup

SabreAbraajManagementCompany

Saffar

SahamGroup

SamenaCapital

SawariVentures

SiparexGroup

SirajFundManagementCompany

SphinxPrivateEquityManagement

Swicorp

TheFinancialCorporationCompany

TheNationalInvestor

TVMCapitalMENALimited

Disclaimer: This publication is intended only to provide a summary of the subject matter covered. It does not

purport to be comprehensive or to render professional advice. No reader should act on the basis of any matter

contained in this publication without first obtaining professional advice.

PRIVATE EQUITY & VENTURE CAPITAL FIRMS IN MENA

2011 mena annual reportv1

Documents

venture capital firms

private equity

average deal size

cumulative funds raised

excludes morocco source

private equity

nbk capital

cumulative funds