Carlyle sees opportunity in Middle East

Carlyle Group expects a pick-up in Middle Eastern private equity activity this year, following a sharp decline in asset valuations during the downturn.

The group, which has raised $500m for its Middle East and North Africa fund, is looking for opportunities in capital intensive sectors, including oil and gas companies, health care, pharmaceuticals and specialist manufacturing, said Walid Musallam, managing director at the fund.

The vehicle was launched two years ago with the intention of raising $750m but closed after reaching $500m because of the global economic turmoil. In spite of looking at some 200 opportunities, it only executed one deal in 2008 because of high valuations, buying a 50 per cent stake in Turkey’s TVK Shipyard, which builds specialised chemical vessels.