Gulf investors target emerging market deals

Dubai: Arabian Gulf institutional and private investors are showing a continued interest for attractive emerging market deals, according to a leading UAE-based alternative asset management company.

Speaking at a press briefing held yesterday, at the Capital Club in Dubai, Pankaj Agrawal, founder and Chairman of Signature Group, said: "From humble beginnings in 2005 we crossed the $1-billion [Dh3.67-billion] mark for assets under management by the end of last year.

"Our success is based on discernible investment partners, proprietary transactions and a dependable team of investment professionals," Agrawal said.

"We also design and implement exit strategies that offer investors superior returns with minimal risk. As a result, we believe Signature's future is one of sustained growth leading to greater achievements for our clients as well as ourselves."

Landmark transactions

Signature's landmark transactions include India's first integrated logistics park in Navi Mumbai, an entertainment-focused city, also in Mumbii, with film and multi-media studios, theatres, convention halls, and commercial and retail elements and an integrated township development in National Capital Region, Delhi.

"The UAE is becoming an important gateway for investment in growth areas such as infrastructure, logistics and energy, particularly renewable energy, natural resources, food and agriculture — particularly for the Indian sub-continent and Africa," says Umesh Chandra, chief executive officer of Signature Group,

"Institutional and other investors from the Gulf Co-operation Council [GCC] countries are exhibiting a greater appetite for exposure to emerging markets compared with many counterparts in North America and Europe. There is a paradigm shift and this is expected to continue in the coming years. The huge potential is something that we at Signature Group are well aware of and would like to exploit," he said.

The Signature Group sees India's economy as a frontrunner in leading the global recovery process, particularly in the renewable energy sector. "Investment in renewable energy is at an all-time high with support and promotion from the government," Chandra said.

"Signature is on top of the game with our focus on renewable energy projects. We are now putting together a consortium of GCC investors to take significant equity stakes in various renewable energy projects in which Signature would be a stakeholder, It is part of a plan to bundle a critical mass of renewable energy assets and then create an acquisition opportunity for a larger player or seek listing in Indian or overseas markets like London, Luxembourg or Singapore."

Suresh Nanda, director, Signature Capital, stated "Indian economy is sweeping aside the global economic downturn and is predicted to grow by as much as 8.75 per cent in the new fiscal year, Signature's particular focus on infrastructure-related investment in India is a sector which has doubled from 4 per cent to 8 per cent of gross domestic product over the past five years, according to government figures. The country is said to be on course to achieve $500-billion infrastructure investment in five years by 2012 providing great opportunities for the GCC investors."