Abraaj Capital, the premier investment firm specialising in private equity investment across the Middle East, North Africa and South Asia (MENASA) region, has acquired a strategic minority stake in Osian’s Connoisseurs of Art Private Limited (Osian’s), the pioneering arts institution based in India which is creating a new infrastructure and model for Indian, Asian and Arab arts, cinema and culture.
The investment in Osian’s, made through the Abraaj Buyout Fund II (ABOF II), highlights Abraaj’s continuing support for and investment in cultural and educational initiatives, and further builds on the diverse portfolio of the company. Osian’s is a unique institution at the forefront of a resurgence of the arts in India, having extensive expertise and following the highest international standards in its auction house, the Osian’s Art Fund & Wealth Management Services for Art Division, the Publishing & Design House, the Literary Agency, the Film House, and its pivotal Centre for Archiving, Research & Development (CARD).
Abraaj’s equity participation and board representation will support and accelerate Osian’s continued growth and will assist with the rapid business expansion and ongoing institutionalization underway at Osian’s.
Arif Naqvi, Vice Chairman and Group Chief Executive Officer of Abraaj Capital, said: “Indian, Asian and Arab art is experiencing a period of historic change and development, and the cultural and financial opportunities are phenomenal. We are delighted to join the outstanding shareholder base of Osian’s and to support Neville in his vision of creating an institution that provides an infrastructure for broad access to the arts in the widest sense whilst also demonstrating that this can be financially viable and attractive.”
Stating the rationale, Neville Tuli, Founder, Chairman and CEO of Osian's, said: “Since the inception of Osian’s, we have sought to create a world-class infrastructure-building institution that takes a leadership position in key artistic and cultural sectors, demonstrating that a knowledge and creativity driven approach can also generate great wealth for the collective, let alone the institution. The unique internally cross-subsidized framework eventually creates a systematic and self-sustaining revenue model without pushing creativity into short-term commercial compromises, so facilitating its developmental potential rather than minor trading opportunities. Osian’s plan to become the first arts and cultural institution to publicly list is on schedule for 2009. ”
Tuli added: “Abraaj’s partnership will further facilitate the expansion of Osian’s while providing Abraaj with an ideal growth opportunity in the fast-growing art and culture sphere.”
© 2008 Al Bawaba (www.albawaba.com)
