Private equity deal values fall again in Middle East

Private_equity_signThe sum of private equity and venture capital deals in the Middle East and North Africa rose last year but the total deal value fell. There were 244 disclosed transactions in 2016, the highest number in any year since 2008, according to the eleventh annual report by the MENA Private Equity Association. This included 69 private equity deals, up from 53 in 2015, and 175 venture capital deals, up from 122. However the total deal value, at $1.1 billion, was down a quarter compared with the previous year, a result the report authors blamed on a decline in the number of high-value private equity deals. It was the second yearly decline following 2014, when an estimated $1.5 billion of deals were done. “Investment activity was notably concentrated in the UAE in 2016,” said the report. “This reflects a perceived flight to safety as the largest alternative markets of Egypt and Saudi Arabia experienced a variety of challenges.” The report warns its results are not comprehensive because an estimated 30% of private equity and venture capital transactions in the region are not announced. “As in prior years, there is a lack of visibility over the funding structures used by fund managers to effect transactions and therefore investment values reflect total transaction size rather than equity investment,” it said. ©2017 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.

SOUTH AFRICAN ROUNDTABLE: Spirit of Ubuntu

Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.