Tom Speechley, a senior partner at Abraaj, has been promoted to CEO of Aureos as part of the move and will have responsibility for $1.75bn of assets under management.
The acquisition means the firm now has about $7.5bn under management across 30 countries, and more than 150 investments.
Former Aureos CEO Sev Vettivetpillia has been promoted to executive chairman following the purchase.
He said, “From the outset, it has been clear that the business models, working cultures, and operational footprint of our two businesses fit together extremely well.”
Abraaj founder and Group CEO Arif Naqvi described the deal as a “pivotal moment” for the firm which would consolidate it as the pre-eminent private equity house in global growth markets.
He said, “The acquisition is a significant step in executing the vision we set ourselves just over a decade ago of creating a dedicated global growth markets private equity firm.
“We share a common philosophy with Aureos, combining a track record of strong investor returns with an appreciation of the long-term social and economic benefits that our model of investing in growth markets can deliver.”
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.
Abraaj sold more than 430 million shares during the company’s listing, representing about 20 per cent of the stock on offer.
A total of 22 cornerstone investors – including Blackrock, Capital Group, Och-Ziff Capital Management, Singapore sovereign wealth fund GIC and Fullerton Fund Management – bought up 62 per cent of the shares.
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