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.