Abraaj Capital is continuing its expansion across the region, today announcing its acquisition of Aureos Capital, a global private equity fund management group that specializes in investing in small and medium enterprises across Asia, Africa and Latin America.
For Abraaj Capital, which last September acquired Amundi's stake in the Al Kantara fund, a fund dedicated to investing in SMEs in North Africa, the deal marks not just an expansion but a transformation of its SME investment platform.
The deal will unite Aureos, which has over US$ 1.3 billion in funds under management and has completed over 250 deals over the past 20 years, with RED, Abraaj's existing $650 million SME-dedicated platform, to create the world's largest SME-focused private equity group, which will be branded Aureos. All Aureos and RED funds will continue according to their existing mandates and investment guidelines, however, Abraaj Capital noted in its press release.
The deal will boost Abraaj Capital's overall position in emerging markets, creating a combined entity with US$ 7.5 billion in assets under management and a presence in over 30 countries.
The acquisition is an exciting opportunity for Abraaj Capital, said Founder and Group Chief Executive, noting in a statement that the two firms have a great deal of synergy. "Both Abraaj Capital and Aureos are ‘home grown’ emerging markets private equity firms with a similar philosophy and shared values," he said. "This acquisition is an important step in our expansion into Latin America, South East Asia and Sub-Saharan Africa and a new chapter in the Abraaj Capital story."
Read the full press release here.