IFC to support Abraaj's $200m Pakistan fund

Abraaj Pakistan Fund I will invest in mid-cap private companies with regional growth potential and operating in consumer-driven sectors, according to a filing. It is expected to make 8-10 investments in total, with ticket sizes ranging from $5 million to $40 million.

IFC noted that its involvement would help draw other LPs into the fund's first close and send a strong signal of commitment to private sector development in Pakistan. The developmental impact includes job creation among small and medium-sized enterprises (SMEs), improving access to finance for small companies, and introducing an additional source of funding into a market currently dominated by banks.

Abraaj's existing investments in Pakistan include K-Electric, a vertically integrated power utility that serves Karachi, and Mannan Shahid Forgings, the country's leading manufacturer of forged and machined components. In 2006, the firm launched the Abraaj BMA Pakistan Buyout Fund in collaboration with BMA Capital.

Three years ago, it was announced that the US Agency for International Development (USAID), The Abraaj Group and JS Private Equity Management (JSPE) would form two private equity funds focused on SMEs in Pakistan. USAID pledged to contribute $24 million to each vehicle, with Abraaj and JSPE matching or exceeding this commitment, while the rest would come from third-party LPs.

Founded in 2002 and headquartered in Dubai, Abraaj invests in emerging markets across Asia, Africa, Latin America, the Middle East, and Turkey. As of May 2016, it had $9.6 billion in assets under management.

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• Topics
• South Asia
• Fundraising
• GPs
• LPs
• Pakistan
• The Abraaj Group