Tuesday 10 March 2009

Regional private equity keeps its powder dry

Regional private equity players say they are well positioned to benefit from the economic storm as companies look for alternative means to raise funds.

“Moving forward, what the crisis has done is make companies turn to private equity players... to look for liquidity, expansion and growth,” said Frederic Sicre, the executive director of Abraaj Capital, one of the largest private equity houses in the UAE. “There is still a large amount of dry powder, or money to be invested from private equity funds, available to fund growing businesses.”

Mr Sicre estimated that of the total of about US$25 billion (Dh91.82bn) of funds raised in the region by private equity firms, less than $10bn had been invested. The latest report by the Boston Consulting Group on private equity outlook estimated that $450bn existed globally in fresh money available for investment.

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