(MENAFN - Khaleej Times) Abraaj Capital, the Middle East's largest private equity firm, on Tuesday announced the completion of its acquisition of UK-based Aureos Capital.
Financial terms were not disclosed, but Abraaj has around 7.5 billion assets under management, or AUM, after the acquisition of Aureos, a private equity fund management group investing in small and mid-cap companies in Asia, Africa and Latin America.
"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," Abraaj Capital founder and group chief executive officer Arif Naqvi said in a statement.
Abraaj Capital now has presence in over 30 countries and over 150 investments managed by a seasoned team of investment professionals with unmatched local expertise.
"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," Naqvi added.
Abraaj Capital senior partner Tom Speechley has been appointed chief executive officer of Aureos Capital with overall responsibility for the firm's mid-cap companies' AUM of 1.75 billion.
"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," said Sev Vettivetpillai, who 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.
While Auras and Abraaj's Riyadh Enterprise Development Funds, or 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 acquisition creates the world's largest SME-focused private equity group targeting SME investment opportunities across the high growth markets of those areas.
The acquisition of Aureos strengthens Abraaj Capital's position in the emerging markets private equity landscape and enhances its global scale.
In February this year, Abraaj announced that it would acquire UK-based specialist fund manager and the deal would be finalised in a month.