Dubai: Al Masah Capital, the Dubai headquartered alternative asset management company expects a strong pick up in private equity and asset management activity this year with an increase in fund flows from limited partners driving more acquisitions, said Shailesh Dash, Chief Executive Officer of Al Masah Capital in an interview with Gulf News.
Al Masah Capital, which began its operations in 2010, has raised more than $1 billion so far and has established its presence in the Middle East and South-East Asia.
Across four industry, verticals such as health care, education, food & beverages and logistics, Al Masah manages more than Dh1 billion under its private equity portfolio.
“We are expanding fast in South East Asia while keeping up the growth momentum in the Middle East. Last year we bought about 17 kindergartens in Singapore and we have also bought about 25 GP clinics in Kuala Lumpur and are looking at an acquisition of more than 10 dental clinics in Singapore,” said Dash.
With growing presence in Singapore and Malaysia, the company is now looking at Indonesia for private equity opportunities. The firm currently manages 42 assets across the Middle East and Asia.
Al Masha has maximum funds committed in the UAE. While more than 90 per cent of its funds are deployed in the Gulf region, nearly 70 per cent of the funds are invested in the UAE. “We have investments across all our platforms such as health care, education, food & beverages and logistics in the UAE. Our health care business is going through a branding exercise and it should be complete within a few weeks from now,” said Dash.
Al Masah’s health care platform, Healthcare MENA Limited has been recently named the Private Equity Fund of the Year at the 6th Annual MENA Fund Manager Performance Awards in Dubai. “The company is doing extremely well with average annual profit growth of more than 65 per,” he said.
In the education sector, Al Masah has 26 assets in primary education across the UAE, Singapore and Oman. In the food & beverages segment, the company has signed an agreement to buy an American burger chain with 14 outlets already operating in the UAE with a perpetual franchise for the UAE and Oman.
In the logistics business, Al Masah’s investment vehicle Gulf Pinnacle Logistics has recently acquired 75 per cent equity stake in Abdul Muhsen Shipping and 87.5 per cent in So-Safe Logistics, with a combined land area of 45,000 square metres, built-up warehouse area of 20,000 square metres and full-fledged logistics consolidation operation.
“These acquisitions are driven by the transportation and logistics hub potential of Dubai. Later on we have plans to start a B to C [business to consumers] e-commerce platform,” said Dash.
Last year the company raised close to $600 million in funds from investors ranging from wealth managers, private banks, sovereign wealth funds, family offices.
Dash believes that decline in oil prices should have a positive impact on the private equity industry. While low energy costs are going to help the recovery of emerging markets boosting their energy demand, lower oil prices would restrict high cost oil producers bringing down the supply and the market is expected to find new price equilibrium.
“The impact of oil prices on asset prices in the region is yet to show up. This happens only if there is a crisis like situation. I don’t foresee a crisis from this as the cycle is expected to reverse in the next 10 to 12 quarters as global oil demand picks up. One should also not forget decline in asset prices offers attractive buying opportunities,” he said.
Following the financial crisis, when the asset prices tanked, private equity investments took a beating, Al Masah focused on fixed income assets that eventually delivered 8.5 per cent to 9 per cent return on investment. The division offers diverse regional and special opportunity funds as well as discretionary portfolio management schemes.
