Abraaj Capital, BMA Capital launch largest ever Pakistan focused US$ 300 million private equity fund

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Abraaj Capital, one of the leading private equity firms in the Middle East, North Africa and South Asian region and BMA Capital, one of the most prominent investment firms in Pakistan’s financial markets have launched a US$ 300 million fund, the Abraaj BMA Pakistan Buyout Fund L.P. It is the largest Private Equity fund ever to target investments in Pakistan.

The Abraaj BMA Pakistan Buyout Fund will target an internal rate of return of 30% and will pursue a broad-based and opportunistic strategy, rather than a sector focused strategy. The fund will concentrate on sectors with high growth rates and proven business models. It will also look into fragmented sectors with room for consolidation, with significant barrier to entry and with stability of business cycle and resistance to recession.  

Sheikha Lubna bint Khalid Al Qasimi, UAE Minister of Economy, “UAE and Pakistan enjoy a special relationship as highlighted by HH Sheikh Mohammed’s latest visit to Pakistan. Pakistan offers tremendous investment opportunities and UAE is keen to play an important role for Pakistan’s development. Abraaj BMA Pakistan Buyout Fund is a step in this direction which I support whole heartedly.”

Commenting on the announcement, Arif Naqvi, CEO & Vice Chairman, Abraaj Capital said: “We are delighted to announce our latest buyout fund dedicated to Pakistan. Pakistan’s economy is the second fastest growing economy in Asia. The Government’s increasing focus on privatisation and the extremely conducive regulatory environment for foreign investment present great opportunities for business and we are delighted to be part of it.” 

Farrukh Khan, CEO, BMA Capital, said: “We are extremely pleased to partner with Abraaj Capital in this pioneering venture. We see a number of consolidation opportunities in many fragmented industries such as insurance, banking, basic materials, power, automotive parts, telecom, textiles, etc. With BMA’s deep knowledge and understanding of Pakistan and involvement in landmark transactions in Pakistan and Abraaj Capital’s regional expertise in private equity, we intend to  focus  on ‘buy & build’ initiatives, under-leveraged companies with quality assets or stable cash flows  and  under-managed or under-capitalized assets,  adding significant value for both our partner companies and shareholders.