Three Regional Pillars to Provide Future Opportunities for Private Equity Firms Leading Into 2010
2009 To Be a Challenging Year, Yet with Some New Types of Investment Opportunities
At the recent Wharton Global Alumni Forum in Dubai, Amwal AlKhaleej CEO Ammar AlKhudairy provided insights into the Middle East private equity sector, highlighting industry trends and opportunities for future growth given the current economic environment.
For the remaining three quarters of 2009, there will be select activity in the private equity sector. Historically, the private market has had lower valuations when compared to the public markets. Today, the reverse is true, which indicates sellers have not readjusted valuations to reflect the current market conditions. However, due to the depressed valuations in the Public markets, there are new potential investment opportunities such as private investment in public equities (PIPE) with an active role for Private Equity Firms. Although interesting from a financial perspective, taking public companies private (i.e. known as public to private transactions) will be somewhat difficult to execute in the key markets in the Middle East given the regulatory framework that tend to strongly protect retail investors.
I have attached the press release in Arabic and English for your information.
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