difcpeforum - VC, Private Equity and Real Estate

One of the insightful presentations from the DIFC Private Equity Forum was the presentation by Vikas Papriwal of KPMG (Partner – Private Equity and Sovereign Wealth). Although just in three slides, it has great insightful notes. Enjoy!

(For a full list of Private Equity firms from Dubai, check out our directory)

Here is a selection of our draft notes from the DIFC Private Equity Seminar:

- On the PE consolidation in Mideast: "Teams" will be consolidated, not firms. People will leave from weak firms and go to strong.

- On the value creation focus of PE firms in Mideast: collapse of financial engineering and multiple arbitrage: so more focus on operational side and active ownership.

- On the trend for syndicated deals: Not happening in Mideast unlike Europe (1) Issues in both Finding and Funding deals (2) Control requirements: if there is no control, the other PE firm wouldn't come on board

- On the benefit of private investor: Main benefit of private investor (in addition to capital): Finance, Expansion, Institutionalization, ... basically stuff that is not the focus of entrepreneur.

- On the state of Mideast Funds: Only 1-2 Middle East funds have gone through the typical full fund life cycle.

- On the deal structure and players: A Private Equity GP: we look for industry "co-investors": For example a PE firm specialized in Healthcare when we want to invest in a healthcare firm.

- On the trend for preparation for IPO: at the moment not even "preparation" for IPO in the Mideast. Everyone is focusing on cost-cutting and IPO preparation looks like a cost

- On the need for lobbying in Mideast PE scene: not quite required similar to Western PE. Because of non-involvement in industries like utilities, defence, etc.

You know DIFC - "The Dubai International Financial Centre". As part of their Knowledge Series, a regular series of seminars, they are going to host a seminar titled "Private Equity in the MENA Region".

It will be held on Wednesday June 24, 2009. So tomorrow is the final day to register for this free event. (Don't forget to mention DubaiBeat.com in your registration form).

If you need to see the agenda before registration, feel free to contact us and we will send you the agenda by email.

[Update: our coverage here]