Dubai Abraaj Capital said Monday that it has fully acquired Aureos Capital (Aureos), a global private equity fund management group investing in small and medium enterprises (SMEs) across Asia, Africa and Latin America.
Abraaj declined to give financial details of the acquisition but said the combined company will manage $7.5 billion (Dh27.54 billion) in assets in 30 emerging economies.
Aureos Capital with $1.3 billion in assets under management provides expansion and buy-out capital to small and medium businesses.
With an operational presence in over 20 countries, $1.3 billion in funds under management and over 250 deals completed in the SME segment in the last two decades, Aureos has built a reputation as the leading emerging markets private equity manager focused on SME investing.
"We are putting together two complementary platforms. In the case of Aureos, they have been investing in SMEs for over 10 years," said Mustafa Abdul Wadood, Abraaj's chief executive officer.
To be merged
The deal is expected to close this quarter. Post acquisition Aureos and Riyada Enterprise Development (RED), Abraaj owned fund dedicated to small and medium enterprises in the Middle East, will be merged. The new emerging market SME platform for Abraaj will be under the Aureos brand.
Currently Riyada has $650 million in assets under management. After the acquisition, Abraaj's emerging markets portfolio will exceed $2 billion.
While 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," said Tom Speechley, Chief Executive Officer, Riyada Enterprise Development.
Aureos' funds are managed through its network of more than 25 offices worldwide by a team of over 90 investment professionals. Investors in Aureos funds include institutional investors, bilateral and multilateral development finance institutions, pension funds, sovereign wealth funds, fund of funds, family offices and foundations and high net worth individuals.
Abraaj officials said the company did not use any debt in its latest buyout deal.
"We're using our balance sheet for this deal," said Abdul Wadood. He did not give any further financial details.
Abraaj said the acquisition of Aureos is part of its strategy to get more exposure to some of the fastest growing emerging markets across the world.
"Both Abraaj Capital and Aureos are ‘home grown' emerging markets private equity firms with a similar philosophy and shared values.
"This acquisition is an important step in our expansion into Latin America, South-East Asia and sub-Saharan Africa and a new chapter in the Abraaj Capital story," said Arif Naqvi, founder and group chief executive of Abraaj Capital.
Abraaj Capital recently sold its 50 per cent shareholding in Acibadem Saglik Yatirimlari Holding and affiliated companies (Acibadem) to Malaysia's Integrated Healthcare and Khazanah Nasional. In August last year Abraaj acquired the North African private-equity fund of Amundi, the French asset manager jointly owned by Societe Generale and Credit Agricole.