The Abraaj Group has accumulated more than two decades of investment experience in global growth markets across six regions. Our typical equity transactions range between US$ 10 million and US$ 100 million.
Our private equity investment strategy is to acquire controlling or significant interests with board representation in stable, mature, well-managed businesses. We create value in these businesses through operational improvements, management incentives, optimization of capital structure and the use of leverage. Where appropriate, we focus on a ‘buy and build’ strategy and believe in investing in businesses that will maximize shareholder value through strong operational growth and substantial capital appreciation. Our ultimate objective is to realize value through structured exits to strategic and trade buyers or onto public markets in the region and beyond, within a three to five-year investment horizon.
Our investment professionals take primary responsibility for execution. Stable investment teams on the ground have strong local knowledge, boosted by support from central management and regional hubs. As such, we have an unrivaled global platform with a unique skill to scale up businesses along a South-South corridor, supported by our value creation plans, standards and growth tools for each of our partner companies across the investment lifecycle.
The skills and knowledge of our professionals are further complemented by specialist external advisors and consultants, who are retained to assist in the evaluation and execution processes. Our focus on quality permeates every aspect of our business, especially our investment approach. In developing a deep network of contacts and business relationships, we seek to identify high-quality investment opportunities on a proprietary basis. We then work to identify, assess and mitigate the risks.
We seek firms with sustainable competitive advantage and strong brands with potential for consolidation. Through our active ownership model, we aim to influence the strategic direction of partner companies to help them achieve their potential, nurturing company earnings growth as the main driver of returns. Our philosophy in each of our target markets is simple: to scale up businesses through our global reach, adding value at all stages from screening and due diligence to post investment and exit planning, and effective risk mitigation.
Funds managed by the Group have holdings in more than 150 partner companies across diverse markets
Funds managed by the Group create sustainable value in sectors including manufacturing, education, retail, aviation, oil and gas, financial payments infrastructure, healthcare and agribusiness.
The Group’s current partner companies include industry leaders such as Network International, the largest independent payment solutions provider in the Middle East and Africa, Integrated Diagnostics Holdings, the largest medical diagnostics business in the Middle East and South Asia, Brookside Dairy, the leading dairy in East Africa, and IASACORP, a long-established family-run women’s retail business in Peru.
Brookside Dairy (Brookside) is a well-known entity in the East African business world, having grown from a small processing plant near Kenya’s capital, Nairobi, 15 years ago to a giant organization producing milk and dairy products across the region. Recognizing the potential of new technologies, developed infrastructures and the positive impact that increased employment opportunities would have upon the local communities, The Abraaj Group’s Africa Fund invested US$ 18.7 million in Brookside in 2009. Within just one year, Brookside achieved a compound annual growth rate of 17% and increased employee numbers by 11%. Its focus on sourcing milk from smallholders means it provides livelihoods for more than 200,000 Kenyans.
The Karachi Electric Supply Company (KESC) generates and supplies electricity to more than 18 million people in Karachi, Pakistan’s largest city. Since investing in KESC in 2008 through its Fund, The Abraaj Group has helped transform the company by investing in operational infrastructure, improving supply chains, working more closely with stakeholders and adding 1000MW of generation capacity. KESC has reduced aggregate technical and commercial losses to less than 24% in two thirds of the city, and the company has achieved a positive net income for the first time in 17 years. KESC has also taken a lead role in redefining the future fuel strategy of the energy sector of Pakistan, establishing the world’s largest biowaste-to-energy plant in the Landhi Cattle Colony.
Opalia Pharma is a pharmaceutical company that makes generic drugs under its own brand name. Its sales mainly cover the Tunisian market, with exports to Francophone Sub-Saharan Africa, North Africa and the Middle East. Opalia Pharma specializes in liquid and semi-liquid dosage forms and its therapeutic areas of expertise include dermatology, the respiratory system and the cardiovascular system, among others. Post investment, The Abraaj Group has been working closely with the company and has facilitated the appointment of senior industry experts to Opalia Pharma’s board to provide strategic advice. The Group has also supported the company in implementing a new accounting and procurement system to improve financial reporting and operational efficiencies. Opalia Pharma is also in dialogue with The Abraaj Group to identify new markets for its products in Algeria and the GCC.
Established in 1998, Peru-based IASACORP International (IASA) is the leading women’s accessories retailer in the Andean region. Known through its proprietary brands‚ Do It!, Glitter and Do It! Kids‚ IASA operates more than 300 points of sale (POS) in Peru, Chile, and Colombia and 10 POS in Venezuela and Ecuador through franchise agreements. Recognizing IASA’s potential, The Abraaj Group made an initial US$ 4 million investment in 2009 followed by US$ 1 million in 2010 through its Latin American Fund. Our team has helped IASA lay the foundations for growth by professionalizing the company and improving corporate governance standards. Between 2009 and 2011, IASA achieved CAGR revenue growth of 42.8% and increased its workforce by 38%.