Abraaj to buy Aureos

Abraaj to buy Aureos

Published: February 21, 2012

Deal will create US$7.5bn emerging market private equity player.

Private equity firm Abraaj Capital will strengthen its operations in the emerging markets after it agreed to buy Aureos Capital.

The Dubai-based firm will buy the fund, which invests in SMEs across Asia, Africa and Latin America, for an undisclosed sum.

The deal will create a business with some US$7.5bn under management, interests in 30 countries and more than 150 investment professionals.

Abraaj currently has operations in the Middle East, Africa and Turkey. This deal expands the firm’s reach into Latin America and Southeast Asia while strengthening its operations in Sub-Saharan Africa.

Following the deal Riyada Enterprise Development, Abraaj’s US$650mn SME fund, will trade under the Aureos brand.

Aureos was created in 2001 as a joint venture been the UK and Norwegian governments to invest in developing countries. It was bought by its management in 2008.