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Cautious Optimism for MENA Dealmaking

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November 14, 2013

Private equity activity in the Middle East North Africa region is still a long way off from a peak in 2011, but dealmaking is showing improvement this year, according to Financial News. Citing data provider Dealogic, the article reports, 24 private equity deals worth a combined USD 783 million in the Mena region to the end of the third quarter of 2013.

 

It is an improvement on the 16 deals worth USD 525 million done during the same period of 2012, but the reporter notes that the figure “hides a sharp reduction in average deal size” in the third quarter of 2013, when the eight deals were worth just USD 85 million.

 

Activity falls short of the 11 deals worth a total of $1.3 billion in the first three quarters of 2011. The main problem is finding an exit. The political instability has created more need for capital in certain sectors and a wealth of mid-market deals. The trend is a “flight to quality” both in individual deals and in GP selection. (Image source: Four Seasons Hotel, Istanbul, Turkey)

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