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MENA Private Equity Association launches eighth report

July 2015

The MENA Private Equity & Venture Capital Association in partnership with Thomson Reuters and Deloitte, have collaborated this year to produce the 9th Annual Private Equity and Venture Capital report.

The Annual report has been the barometer for industry stakeholders, GPs and investors regionally and globally, to glean insight about the MENA region and follow the progress achieved in the Private Equity and Venture Capital industries.

The report shows that 2014 was a significant year for the industry and has demonstrated the highest levels since 2008 in investment values and fund raisings. 2014 has also seen growth in investment and divestment volumes compared to 2013.

The year was characterised by some of the largest private equity deals seen in the region. Fund managers had demonstrable success in assembling and working with consortium partners, including international private equity investors, to close major transactions.

Overall, there was a sense of returning confidence and increased opportunities as the region continued to emerge from the impact of the Arab Spring.

The MENA Private Equity Association would like to thank all MENA based GPs for their collaboration. We also like to thank AMIC (The Moroccan Private Equity Association).

Last but not least, we’re grateful for our sponsors, TVM Capital Healthcare Partners and BECO Capital, for their generous support.

Key highlights of the MENA Private Equity and Venture Capital report:

UAE and Saudi lead investments by value in the MENA region and investment values in Egypt increased during 2014
  • UAE and Saudi Arabia attracted over 75 per cent of MENA investment activity by value reflecting their scale and stability and increased availability of larger target assets.
  • The value of investments in Egypt doubled over those seen in 2013 as a growing middle class and movement towards increased political stability remain key factors in attracting private equity investment.
  • Total number of known investment volumes increased in 2014 to 72 compared to 66 in 2013. Values of disclosed investments has also seen an increase by 118 per cent to USD 1.5 billion.
  • In 2014, the greatest investment values were in oil and gas and demographic driven sectors such as education, services and food and beverage. Retail, healthcare and consumer goods were also core focus areas for GPs as defensive and consumer driven sectors continue to dominate investment focus.
  • Total funds raised in 2014 reached the highest level since 2008 to USD 1,229 million compared to USD 744 million in 2013.
  • The average close size also increased to USD 103 million.
UAE, Lebanon, Jordan and Morocco continue to be active in venture capital investments
  • Information technology businesses saw the largest number of transactions as venture capital investors continued to target the sector. The manufacturing sector has become more attractive post the downturn and investments in that sector increased significantly over 2013.
  • The venture capital industry in 2014 remained broadly consistent with 2013. Investment activity in 2014 was led by Lebanon. The country is characterised by small and medium size companies. Support from the Lebanese Central Bank has further stimulated interest in investing in start-up companies and SMEs. Jordan, the UAE and Morocco were also notably active in 2014.

 

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