ABOF IV is the fourth in the series of our buyout funds. In line with the investment strategy of its predecessors, the Fund seeks to make control-themed investments, primarily in defensive growth-oriented sectors.

 

The Fund’s strategy aims to take full advantage of the positive economic environment in the region. Across industries, corporates are continuing to grow, expanding into new markets, pursuing consolidation opportunities, and building distinctive capabilities and skills, with a clear focus on corporate governance and sustainability. While deal volumes for the private equity industry in our region remained subdued in the face of uncertainty and hesitation from buyers and sellers, our unwavering efforts in developing and replenishing a robust deal pipeline bore fruit. ABOF IV announced its inaugural transaction in December 2010, the landmark acquisition of a 49 percent stake in Network International.

 

Network International is a market leader in payment-cards processing in the region. It is the dominant merchant-acquiring business in the UAE, holding a market share more than double that of its closest competitor and the largest third-party payment processor in the GCC. It has a growing presence in Egypt, the Levant and Nigeria. In all, Network International serves over 70 banks and financial institutions, and more than 17,000 individual merchants in 28,000 outlets, using 45,000 point-of-sale machines. The MENA region displays highly attractive growth fundamentals as consumers continue to shift from cash - to card-based payments.

 

ABOF IV’s pipeline remains extremely robust and well diversified within the region. We expect the Fund’s deployment to accelerate henceforth and to execute several transactions in 2011. A number are at advanced stages, including high-growth opportunities in financial services, pharmaceuticals, consumer, and downstream oil and gas sectors.