Investment

StanChart private equity spinoff plans Middle East investment

Bloomberg/Anthony Kwan

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The company has about $700 million to spend after it completed a management buyout of the UK based lender’s private equity business in July.

Wednesday 07, August 2019

Affirma Capital, the private equity spinoff of Standard Chartered plans to complete at least one acquisition in the Middle East and Africa over the next year, reported Bloomberg.

Taimoor Labib, Affirma’s founding partner, Head of the Middle East & North Africa and Chairman of Africa, said that the Singapore-based emerging markets group is targeting deals between $25 million and $100 million in the region where consumer spending is on the rise.

Affirma, which already manages $3.6 billion in assets, is particularly interested in Egypt, Nigeria and Jordan, Labib said.

The firm is also planning to exit one of its investments in the Middle East and Africa over the next 12 months.

“We’re positive on Saudi from a big-picture perspective, the strategic plans make sense and investors are waiting to see GDP growth and macro trends in 2019. If you see the improvement continuing, which we have seen in the first half, private equity will return in scale in 2020 or 2021,” added Labib.

Labib said that Nigeria is another country that went through a painful devaluation and is a year or two behind Egypt in its growth story, however, they need a decent 2019 to continue to recover.

Additionally, Labib said that to say Abraaj has not hurt the Middle East or all emerging markets would be disingenuous, adding that private equity firms require to prove themselves more to limited partners and it’s going to be longer fundraising cycles, know-your-customer requirements for US and European institutions are also expected to increase."

TAGS : Affirma Capital, Standard Chartered, Abraaj Group

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