'Private equity fundraising in H1'2010 is already equal to fundraising in FY2009. This would suggest that private equity activity is expected to gradually increase after two turbulent years for the regional industry' said Mr. Nasser Saidi from Hawkamah during the launch of the GVCA Annual Report 2009.

Access to capital is unlikely to be a problem for private equity firms in the Middle East as the region is flush with liquidity and regional GDP is set to grow 3.5% in 2010 according to a report by Insead.

The market for leveraged buy-outs has dried up forcing private equity firms to focus on growth capital and equity driven transactions according to an article by Robin Wigglesworth in the Financial Times. Wigglesworth believes the scarcity of credit is putting pressure not only on returns but also on the buyout model which is unsustainable and will lead to the disappearance of a substantial number of private equity funds.

'In the world of luxury goods, the ocean-going motor yachts that fill the harbor at Monaco every summer have to be the ultimate symbol of lavish excess' says an article in the Financial Times. Private equity investors are still injecting fresh equity in luxury yacht brands and the most recent deal involved a £25m injection into Sunseeker, one of the best-known luxury yacht brands.

London's Mayfair hotel played host to 70 investors gathered for a chance to meet the UK and Ireland's 30 hottest technology start-ups says a Financial Times article. The UK and Ireland Tech Tour is a two-day speed-dating event that introduces young technology companies in need of money to potential investors.

'US Congress is considering removing certain tax perks that have helped inflate the private equity bubble' says The Economist. The legislation in question is the 'American Jobs and Closing Tax Loopholes Act of 2010' and the change is set to impact the treatment of 'carried interest'.

'More money is set to pour into private equity in emerging markets, as investors increase their commitments to funds targeting deals in China, India and Brazil says Martin Arnold in his Financial Times article. The news item covers the research conducted by

According to Ahmed Nassef, Vice President and Managing Director, Yahoo! Middle East, web based activity in the Middle East is set to explode in the next decade. The recent acquisition by Yahoo of the Middle East website, Maktoob, certainly points in that direction. The region is on the radar of multinations because the number of web users is increasing quickly and has hit approx 50m at last count. In comparison the total reader

Outlook Saudi Arabia, a Private Equity Summit hosted by the Saudi General Investment Authority (SAGIA), invited three regional CEO’s to examine new opportunities and challenges for private equity in Saudi Arabia.

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Globally, 2009 was the worst year for fundraising since 2004. A recent US survey shows that as many as 40% of LPs interviewed made no new commitments in 2009. This would explain the $246bn raised by 482 funds, down 61% from

"Saudi Arabia is open to business and is welcoming international business activities in terms of investments, partnerships and technology supply", said Mr. Abdallah Y. Mouallimi during a breakfast session at TiE Nordic PE Congress 2009. He further added that the Gulf Cooperation Council (“GCC”) generates GDP output of cUS$800 bill

The "new entrepreneurs" of the Middle East must face up to the crisis or fail.

Private equity firms need to rethink their business models in order for the industry to have a bright future

Private Equity (PE) industry in Saudi Arabia is set to grow into a multi-billion dollar industry over the next 3-5 years with a stable medium term outlook, according to panelists at the Private Equity MENA World Conference. The panel discussed the prospects of Saudi Arabia surpassing the neighboring PE markets in size and scale by 2

The 1^st MENA Investor Summit took place in Jeddah on the 1^st and 2^nd of November 2009. The event brought over 150 investors from across the region and introduced them to pre-selected 28 companies.

A recent survey the British Venture Capital Association (BVCA) examines the attitudes of over 100 LPs towards investing in private equity funds over the next two years. The results are mixed with investors intending to decrease allocations in the short term but expressing positive sentiments about their long-term allocations to private equity funds.

Emirates Business 24-7, 04 October 2009

Private equity investors shied away from Middle Eastern targets in the three months to September following limited activity in the region in t

Oliver Stone and Michael Douglas are back reprising the role of Gordon Gecko in Wall Street 2. The original film shot in 1987 (yes it was 20+ years ago!) was a tale about greed, excess and unchecked ambition which encouraged many young people at the time to pursue a career in high finance.

Yahoo gave web entrepreneurs in the Middle East much to cheer about by recently announcing its acquisition of Maktoob,  a regional competitor: see Arabian Business.

Sultan Al-Qassemi comments in his blog, Challenges for Private Equity in the GCC, about the nature and accessibility of private equity capital in the Middle East. His perspective is interesting as he himself is an experienced investor and knows the regional landscape very well.

Fiona Sheffield of E&Y on CNBC talking about threat of hedge fund exodus from London.

The subject of private equity fees stirs up much emotion amongst industry participants and commentators. It's frustrating for practioners to see news articles (like the one attached) confusing the rationale for charging fees with the quantum being charged.

Interesting interview on SKY News with private equity spokesperson Catherine Woodthorpe. It is worth a look if you want to learn more about private equity and hear an industry insider defend its reputation.

Dubai World - the state-owned conglomerate - with interests ranging from ports to property and investment, is being watched closely as it symbolises the acute problems facing Dubai in the wake of the financial crisis.

A number of large private equity firms including Candover, Permira and TPG have recently frozen or downsized their latest buy-out funds.

The financial crisis has adversely impacted private equity fundraising but a recent survey of 250 investors by Almeida Capital found that 78 per cent of investors had either bought a private equity position in the secondary market or expected to do so soon.

The sheer breadth and depth of the financial crisis has taken everybody by surprise and financial services are amongst the worst hit sectors. Nevertheless, even in these turbulent times the UAE has emerged as the best performing geography for private equity deals according to a report by Business 24|7 but the report also went on to say that overall M&A and private equity activity declined sharply in H1 2009.

There is little doubt as to the role expanding credit has played in bringing about the current recession. An increasing number of economists believe this recession is the start of a long-term deleveraging of the global economy. They are not without reason: US credit market debt as a percentage of GDP currently stands at 350%. The only other significant rise historically was during the Great Depression.

The Emerging Markets (EMs) Private Equity Survey is conducted by the Emerging Markets Private Equity Association on an annual basis. The survey researches the investment patterns, likes and dislikes of Limited Partners, representing North America (47%), Europe (41%) and Rest of the World (12%), for investment flows into the Emerging Markets.

Private Equity is well positioned in these difficult times to capitalize on lower valuations and provide much needed liquidity when funding is scarce but growth still anticipated. This is according to the 2008 annual report by Gulf Venture Capital Association (GCVA)