In a bid to expand geographical footprint in Asia, Dubai-based Abraaj Capital has acquired 100% of UK-based Aureos Capital, a global private equity fund investing in small and medium-sized enterprises across Asia, Africa and Latin America.
The combined entity will have approximately $ 7.5 billion in assets under management, a presence in over 30 countries and 153 investments managed by a team of over 150 investment professionals.
The acquisition also brings Aureos together with Abraaj?s existing $650 million SME platform, Riyada Enterprise Development (RED).
According to the deal set up, Aureos and RED 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. The expanded Aureos platform will retain its inherent structure and team within the Abraaj Group.
Abraaj has been keen to beef up its emerging market presence recently. Last August, it bought the North African private equity operations of French asset manager Amundi and it also looked at a potential acquisition of its Egyptian rival Citadel Capital, but the talks ended without a deal.
Omar Lodhi, CEO, Abraaj Capital Asia, pointed out that the acquisition will enable Abraaj Capital to further extend its leadership in emerging markets.
?In Asia, Aureos brings deep expertise and networks with over 35 investment professionals operating out of 10 offices across East Asia and the Indian sub-continent and with a successful track record of having invested in over 45 SME businesses. With this transaction, we are redoubling our focus in East Asia and the Indian sub-continent and significantly enhancing our operational footprint, access to investment opportunities and commitment to capital,? Lodhi said.
The acquisition, which is subject to necessary approvals from the relevant authorities and one group of fund investors, is expected to be completed in the first quarter of 2012.