Dubai-based private equity firm Abraaj has bought UK-based Aureos Capital, in a deal that will create the world’s largest private equity firm focused on SMEs in the emerging market space.
The buy-out, which will strengthen Abraaj’s position in the emerging markets private equity space, will mean that the combined entity will hold around $7.5bn of assets, boast a presence in over 30 countries and manage a portfolio of 153 investments
The deal also brings Aureos together with Abraaj’s existing $ 650m SME platform, Riyada Enterprise Development (RED), which is focused on the MENA region.
While Aureos and RED will operate under the Aureos brand, all Aureos and RED funds will continue according to their existing fund mandates and investment guidelines. The expanded Aureos platform will retain its inherent structure and team within the Abraaj Group, the firm said in a statement.
Arif Naqvi, founder and group chief executive of Abraaj Capital said, “This is a very exciting opportunity for Abraaj Capital and enables us to further extend our leadership position in emerging markets. Aureos is a globally respected private equity firm with a dedicated team of investment professionals who have extensive experience and knowledge of the markets they invest in, with a geographical footprint totally complementary to Abraaj with no overlap.
“Both Abraaj Capital and Aureos are ‘home grown’ emerging markets private equity firms with a similar philosophy and shared values. This acquisition is an important step in our expansion into Latin America, South East Asia and Sub-Saharan Africa and a new chapter in the Abraaj Capital story”.
Aureos CEO Sev Vettivetpillai added, “The integration with the Abraaj Group is a testament to Aureos’ success and investment proposition in the high-growth economies of Asia, Africa and Latin America. It further validates and strengthens our business model and will provide us with access to greater resources, tremendous synergies in the back office, new markets, and compelling investment opportunities.
“I look forward to working within the Abraaj Group to further expand the Aureos focus on the SME segment across all emerging markets and integrating our business platforms to further enhance investor returns and long-term value for all stakeholders”
Abraaj recentrly sold its 50 per cent stake in Turkish hospital operator Acibadem to Integrated Healthcare and Khazanah Nasional, the investment holding arm of the government of Malaysia.
Integrated Healthcare and Khazanah have bought a combined 75 per cent stake in Acibadem from Abraaj and the Aydinlar family, through a combination of cash and the exchange of newly-issued Integrated Healthcare shares.
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