Abu Dhabi wealth fund ADQ signs deal for stake in Egypt luxury hotels | Reuters
Abu Dhabi wealth fund ADQ has agreed to acquire a 40.5% stake in ICON, the hospitality arm of Egypt's Talaat Moustafa Group (TMG) (TMGH.CA), the fund said on Friday, a deal that will see it take part ownership of a number of luxury hotels in the country.
Under the deal, a special purpose vehicle owned by ADQ and its unit ADNEC, with respective 49% and 51% holdings, will carry out a capital increase to acquire the ICON stake.
"The transaction represents a major foreign direct investment in Egypt and marks a strong vote of investor confidence in the Egyptian tourism and hospitality sector," ADQ said in a statement, which did not provide financial details of the transaction.
The deal includes the acquisition of a stake in seven iconic heritage hotels - including Four Seasons properties in Cairo, Sharm El Sheikh and Alexandria, and the Kempinski Nile Hotel in Cairo - currently owned by the Egyptian government through ICON.
Egypt's prime minister said in December that the country's sovereign wealth fund had signed an $800 million deal to sell a 39% stake in the seven hotels to TMG, with the right to raise the share to 51%.
It was understood that under the deal, an international investor would buy a minority $882.5 million stake in ICON.
Political ties between the UAE and Egypt are strong with the Gulf state supporting Cairo through a financial crisis with direct capital injections and investments, lately preferring the latter for the potential returns on offer.
ADQ bought stakes worth around $1.85 billion in Egyptian firms in 2022, and Cairo last year agreed to sell minority stakes in three oil and petrochemical sector companies to the fund for $800 million.
Egypt is selling assets to boost the private sector, raise scarce hard currency and launch economic reforms under a $3 billion IMF loan programme.
Friday 12 January 2024
UAE shares dip on escalating Mideast conflict | Reuters
UAE shares dip on escalating Mideast conflict | Reuters
Stock markets in the United Arab Emirates ended lower on Friday amid rising tensions in the Middle East as the United States and Britain launched strikes against Houthi military targets in Yemen.
In Abu Dhabi, the index (.FTFADGI) was down 0.5%, ending its five-sessions winning streak, while weekly gains hit over a two-month high.
The conglomerate International Holding Company (IHC.AD) dropped 0.7%, and the UAE's largest lender, First Abu Dhabi Bank (FAB.AD) slipped 2%, the sharpest decline in over two months.
Dubai's benchmark index (.DFMGI) ended 0.3% lower, extending the previous sessions' losses with almost all sectors in the negative territory, while it gained 0.4% on a weekly basis.
The tolls operator Salik Company (SALIK.DU) lost 1.5%, and Tecom Group (TECOM.DU) slid 1.4%.
"The Dubai stock market recorded a slightly positive week and remained on an uptrend overall", said Ahmed Negm, Head of Market Research MENA at XS.com.
"However, the main index saw some price corrections as traders reacted to increasing geopolitical tensions and could continue to see some downside risks".
Stock markets in the United Arab Emirates ended lower on Friday amid rising tensions in the Middle East as the United States and Britain launched strikes against Houthi military targets in Yemen.
In Abu Dhabi, the index (.FTFADGI) was down 0.5%, ending its five-sessions winning streak, while weekly gains hit over a two-month high.
The conglomerate International Holding Company (IHC.AD) dropped 0.7%, and the UAE's largest lender, First Abu Dhabi Bank (FAB.AD) slipped 2%, the sharpest decline in over two months.
Dubai's benchmark index (.DFMGI) ended 0.3% lower, extending the previous sessions' losses with almost all sectors in the negative territory, while it gained 0.4% on a weekly basis.
The tolls operator Salik Company (SALIK.DU) lost 1.5%, and Tecom Group (TECOM.DU) slid 1.4%.
"The Dubai stock market recorded a slightly positive week and remained on an uptrend overall", said Ahmed Negm, Head of Market Research MENA at XS.com.
"However, the main index saw some price corrections as traders reacted to increasing geopolitical tensions and could continue to see some downside risks".
U.S. and British warplanes, ships and submarines struck across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping, a widening of regional conflict triggered by Israel's war in Gaza.
Blackstone, Apollo and Private Equity Rivals Face Calls for Better Terms - Bloomberg
Blackstone, Apollo and Private Equity Rivals Face Calls for Better Terms - Bloomberg
Some of the most influential investors are giving the world’s largest private equity firms a message: if you want money for your next fund, here’s our list of demands.
Sovereign wealth funds and state pension providers are among investors telling money managers they’ll only commit in their upcoming fund raises if their capital tied up in old funds is released, according to people with knowledge of the matter.
Additional requests range from fee discounts and more co-investment opportunities, to greater information rights and representation on committees, the people said, asking not to be identified because the requests are private. Some are even asking for a cut of the fund’s management fee or an opportunity to buy a stake in the fund manager, the people added.
“We’re now undergoing a real cultural change,” said William Barrett, managing partner at Reach Capital, a private-market fundraising firm. “It’s the first time we’re seeing LPs being so straightforward and linking a distribution from one fund to a new commitment in another. They’ve never been so precise with their asks.”
The relationship between private equity firms such as Blackstone Inc. and Apollo Global Management and their backers is symbiotic. Large fund managers cannot scale their platforms without money from the biggest so-called limited partners, while the investors need managers with the capacity to accept large swathes of capital.
But the balance of power is shifting within the $8 trillion private equity industry as buyout funds struggle to return money to investors amid disagreements between buyers and sellers over corporate valuations. That’s handing more power to LPs to dictate the terms of engagement.
Some of the most influential investors are giving the world’s largest private equity firms a message: if you want money for your next fund, here’s our list of demands.
Sovereign wealth funds and state pension providers are among investors telling money managers they’ll only commit in their upcoming fund raises if their capital tied up in old funds is released, according to people with knowledge of the matter.
Additional requests range from fee discounts and more co-investment opportunities, to greater information rights and representation on committees, the people said, asking not to be identified because the requests are private. Some are even asking for a cut of the fund’s management fee or an opportunity to buy a stake in the fund manager, the people added.
“We’re now undergoing a real cultural change,” said William Barrett, managing partner at Reach Capital, a private-market fundraising firm. “It’s the first time we’re seeing LPs being so straightforward and linking a distribution from one fund to a new commitment in another. They’ve never been so precise with their asks.”
The relationship between private equity firms such as Blackstone Inc. and Apollo Global Management and their backers is symbiotic. Large fund managers cannot scale their platforms without money from the biggest so-called limited partners, while the investors need managers with the capacity to accept large swathes of capital.
But the balance of power is shifting within the $8 trillion private equity industry as buyout funds struggle to return money to investors amid disagreements between buyers and sellers over corporate valuations. That’s handing more power to LPs to dictate the terms of engagement.
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