Bouncing Back: MENA Region’s Improving PE Market


July 11, 2013

The private equity industry in the Middle East and North Africa (MENA) region continued recovered in 2012, according to a report in the Saudi Gazette, citing data from MENA Private Equity Association released this week.

The mid-market is proving to be attractive for investors, despite a slower pace of fundraising for the region. Total number of investments grew to 91 deals from 84 year on year. Overall fundraising fell to USD 400 million, from USD 900 million the previous year, driven down by smaller fund sizes and global macroeconomic uncertainty, says the report. A sign of optimism is that total value of funds announced in 2012 increased compared to 2011, by USD 200 million.

Other findings
·Non-cyclical sectors such as oil and gas, healthcare, and education accounted for nearly 60 percent of investments in 2012.

·UAE topped the list of the volumes in the GCC. Morocco, Lebanon and Egypt claimed the most deals by volume in 2012 (See graphic); Turkey emerged as a popular destination outside of MENA in 2012.
·The number of exits completed during 2011 and 2012 increased compared to 2009 and 2010.

There is about USD 6.4 billion in dry powder available for investment. (Image Source MENA PE Association )

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