(Abraaj Capital) July 24, 2012 – Abraaj Capital, a leading private equity manager investing in global growth markets, today announced the completion of the acquisition of Aureos Capital (“Aureos”), a private equity fund management group investing in small and mid-cap companies (“SMC”) in Asia, Africa and Latin America.
With the consummation of this acquisition, Abraaj Capital now has approximately US$ 7.5 bln in assets under management, a presence in over 30 countries, and over 150 investments managed by a seasoned team of investment professionals with unmatched local expertise.
Announcing the completion of the transaction, Arif Naqvi, Founder and Group Chief Executive, Abraaj Capital said, “The acquisition of Aureos is a pivotal moment for Abraaj as it consolidates our position as the pre-eminent private equity fund manager in global growth markets. As a result, Abraaj is able to provide investors with a unique opportunity to invest in high growth markets through multiple platforms”.
“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”, Mr. Naqvi added.
Sev Vettivetpillai, Executive Chairman, Aureos said, “We are delighted to have completed this transaction with Abraaj which sets the strategic path for Aureos’ long-term growth and allows us to deliver value to our investors by bringing our portfolio of partner companies into new markets and developing mutually beneficial relationships with the Abraaj portfolio. From the outset, it has been clear that the business models, working cultures, and operational footprint of our two businesses fit together extremely well.”
While Aureos and Abraaj’s Riyada Enterprise Development (RED) Funds will benefit from the synergies of being part of a common platform, and operate under the single brand ‘Aureos’, all Aureos and RED Funds will continue according to their existing Fund mandates and investment guidelines.
Tom Speechley, Senior Partner at Abraaj Capital, has been appointed Chief Executive Officer of Aureos Capital with overall responsibility for the firm’s SMC assets under management of c. US$ 1.75 bln. Mr. Vettivetpillai assumes the position of Executive Chairman of Aureos Capital and joins the Executive Committee of Abraaj Capital. The completed transaction has been strongly supported by Aureos’ core investors, including CDC, the UK’s development finance institution.
About Abraaj Capital group
The Abraaj Capital group is a leading private equity manager investing in global growth markets. Founded in 2002 by Arif Naqvi, the group has raised over US$ 8 bln and distributed US$ 3.5 bln to investors. Employing over 300 people, the group has 32 offices spread across 7 regional hubs in Colombia, Dubai, Istanbul, London, Mumbai, Nairobi and Singapore.
Abraaj Capital currently manages approximately US$ 7.5 bln across 25 sector and country-specific Funds across 3 primary strategies: (i) Private Equity (majority and significant minority investments greater than US$ 50M); (ii) Small and Mid-Cap (SMC) PE investing (targeting influential minority investments of less than US$ 50M); and (iii) PE Real Estate (primarily yield-generating real estate investments).
Funds managed by the group have holdings in over 150 partner companies that collectively employ in excess of 100,000 people and create sustainable value in sectors including manufacturing, education, retail, aviation, oil and gas, financial payments infrastructure, healthcare and agribusiness. The group’s current partner companies include industry leaders such as Network International, the largest independent payment solutions provider in the Middle East and Africa, Al Borg Laboratories, the Middle East’s largest privately owned medical testing laboratory, Brookside Dairy, the largest dairy in East Africa, and Iasacorp, a long established family run women’s retail business in Peru.
In 2012, Abraaj Capital was ranked the largest private equity firm in emerging markets globally by Private Equity International. The group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory of the UN-backed Principles for Responsible Investment and the United Nations Global Compact.
Abraaj Capital Limited, a member of the Abraaj Capital group, is regulated by the Dubai Financial Services Authority.