The Abraaj Group

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The Abraaj Group
Limited liability company
Industry Private Equity
Founded 2002
Founder Arif Naqvi
Headquarters Dubai, UAE
Key people
Arif Naqvi, Founder/CEO
Products Investments, private equity funds
Total assets c. US$10 billion
Number of employees
>300
Website www.abraaj.com

The Abraaj Group is an investor operating in the growth markets of Africa, Asia, Latin America, Middle East and Turkey. Founded in 2002 by Arif Naqvi, the group has over 20 offices spread across five regional hubs in Istanbul, Mexico City, Dubai, Nairobi and Singapore. Abraaj currently manages c.US$10 billion in assets globally [1]

In April 2015, the firm closed a US$990 million sub-Saharan Africa fund, its third in the region according to the company.[2] Combined with US$375 million raised in August 2015 for a fund that will focus on North Africa,[3] the two funds give Abraaj just under US$1.4billion to invest in Africa, a record sum raised in a single year.[4] In July 2016, the firm announced that it raised US$526 million for investments in Turkey through Abraaj Turkey Fund I.[5]

Business Segments[edit]

The Abraaj Group invests in private equity and in thematic businesses including healthcare, energy infrastructure and real estate.[6]

Private Equity[edit]

The Abraaj Group is an investor in global growth markets and has made more than 140 investments across a range of sectors. These businesses currently include:

  • Acurio, a Peruvian restaurant group;[7]
  • Hepsiburada, the largest e-commerce player in Turkey;[8]
  • KPN Academy, a Thailand-based multi-educational group focused primarily on the K-12 segment;[9] and
  • Libstar, one of the largest unlisted food and personal care manufacturers in South Africa.[10]

Real Estate[edit]

Abraaj’s Real Estate Investment Team has invested in a range of real estate asset classes, focusing on attractive returns derived from underlying growth fundamentals such as urbanization and increased consumer spending.[11]

Healthcare[edit]

Abraaj has invested in companies operating in the healthcare market including healthcare delivery and services, diagnostics, and pharmaceuticals.[12] Significant healthcare transactions include Integrated Diagnostic Holdings in MENA and Acibadem Healthcare in Turkey.[13][14]

In March 2014, Abraaj announced the establishment of North Africa Hospital Holdings Group, a healthcare roll up platform, built by acquiring standalone hospitals in the region. [15][16]

Energy Infrastructure[edit]

Significant energy infrastructure transactions include K-Electric, a vertically integrated power utility based in Pakistan.[17] In 2015, Abraaj and India’s Aditya Birla Group announced a partnership to develop 1 GW of solar power in the country.[18] [19]

Sustainability Initiatives[edit]

In 2012, The Abraaj Group became a signatory to the UN Global Compact and that same year, UN Secretary-General Ban Ki-moon appointed CEO Arif Naqvi to the Board of the Global Compact.[20]

Since its founding in 2002, environmental, social and governance (ESG) considerations have been a part of Abraaj’s investment process. Its consideration of ESG issues in each investment adds value locally by ensuring that each company brings high standards of sustainable business practice to its communities.[21] The Abraaj Sustainability Index (ASI), a proprietary tool launched in 2008 measures the sustainable development impact of Abraaj’s investments. Four elements are measured in the index: financial performance, environmental performance, human development and private sector and corporate governance development.[22]

In 2015, Abraaj established the Abraaj Growth Markets Grant to support projects aimed at resolving critical challenges in growth markets. Nine projects were selected ranging from developing myoelectric prosthetic limbs in Kolkata to tracking crime patterns for a safer culture in Puebla.[23]

In 2014, Abraaj established the Abraaj RCA Innovation Scholarship at the Royal College of Art in London. It is the largest scholarship of its kind for postgraduate studies in the creative sector [24] The Abraaj Group Art Prize, the group's flagship arts patronage program, aims at empowering potential and gives often under-represented contemporary artists the resources to further develop their talent.[25]

In 2012, the Abraaj Group has also established an endowed professorship in private equity at the American University in Cairo.[26] The Abraaj Group Chair is occupied by Professor Charilaos Mertzanis.[26]

References[edit]

  1. ^ "The Abraaj Group: About Us". www.abraaj.com. Retrieved 2016-09-12. 
  2. ^ Saleem, Nadia (13 April 2015). "Private equity house Abraaj closes $990 mln sub-Saharan Africa fund". Reuters. Retrieved 10 May 2015. 
  3. ^ Martin, Matthew (24 August 2015). "Abraaj Group Raises $375 Million for North Africa Investments". Retrieved 31 October 2016 – via www.bloomberg.com. 
  4. ^ Cotterill, Joseph (24 August 2015). "Africa private equity group raises $1.4bn to invest in continent". Financial Times. 
  5. ^ "The Abraaj Group: Press Release: The Abraaj Group Raises US$ 526 million for Investment in Turkey". www.abraaj.com. Retrieved 2016-09-12. 
  6. ^ "Abraaj Investment Management ... vs Mr. Neville Tuli on 14 July, 2015". Retrieved 31 October 2016. 
  7. ^ "The Abraaj Group: Press Release: Aureos Invests in Leading Peruvian Restaurant Group". Retrieved 31 October 2016. 
  8. ^ Cotterill, Joseph (22 February 2015). "Abraaj takes $100m stake in Hepsiburada". 
  9. ^ "Abraaj invests in Thai education provider - AVCJ". Retrieved 31 October 2016. 
  10. ^ Reuters (8 October 2014). "Abraaj Group buys majority stake in South Africa's Libstar". 
  11. ^ "The Abraaj Group: Real Estate". Retrieved 31 October 2016. 
  12. ^ http://www.abraaj.com/news-and-insight/annual-review-2015/healthcare
  13. ^ https://dealbook.nytimes.com/2012/07/12/malaysian-hospital-firm-ihh-healthcare-raises-2-billion-in-i-p-o/?_r=0
  14. ^ http://www.reuters.com/article/abraaj-equity-idh-idUSL6N0U018420141216
  15. ^ http://www.ft.com/intl/cms/s/0/50ba8fc6-1b2e-11e5-a130-2e7db721f996.html
  16. ^ http://www.reuters.com/article/2015/03/02/emirates-abraaj-north-africa-idUSL5N0W40IG20150302
  17. ^ http://www.reuters.com/article/pakistan-electricity-abraaj-idUSL6N0PB1UO20140630
  18. ^ http://in.reuters.com/article/aditya-birla-nuv-solar-idINKCN0S10AW20151007
  19. ^ http://economictimes.indiatimes.com/industry/energy/power/aditya-birla-partners-dubais-abraaj-group-for-solar-plants/articleshow/49253331.cms
  20. ^ "Board Members - UN Global Compact". Retrieved 31 October 2016. 
  21. ^ "Investing In Africa: The Abraaj Story - Ventures Africa". 12 May 2014. Retrieved 31 October 2016. 
  22. ^ http://centres.insead.edu/global-private-equity-initiative/research-publications/documents/ESG-in-private-equity.pdf#page=10
  23. ^ "The Abraaj Group: The Abraaj Group announces winners of 'Abraaj Growth Markets' Grant". www.abraaj.com. Retrieved 2016-09-12. 
  24. ^ "The Abraaj RCA Innovation Scholarship". Retrieved 31 October 2016. 
  25. ^ "Nafas Art Magazine". Retrieved 31 October 2016. 
  26. ^ a b "Endowed Professorships". Retrieved 31 October 2016. 

External links[edit]