Ijara Capital acquires Pakistan's Quick Foods

It is the first investment from Ijara’s Pakistan Emerging Markets Fund (PEMF), which was touted last year as the first PE fund to be licensed by the local government. Ijara will retain the company’s existing management and work on expanding operations internationally.

Founded in 1990, Quick Foods is regarded as one of the most recognizable food brands in Pakistan, especially under the Mon Salwa label, which offers a range of frozen meatballs known as koftay as well as kebabs, burger patties and nuggets.

PEMF closed last year with $100 million in commitments from at least five domestic LPs, including institutional investors and high net worth groups. It will focus primarily on fast moving consumer goods, healthcare, education and logistics. Some investments in real estate and technology will also be considered.

Most deal targeting will be domestic, although Ijara has received government permission to invest internationally with strict conditions. Investment horizons will range from 7-10 years. The GP has received a tax holiday until 2024 to accommodate longer holding periods and has already applied to the government for an additional extension since it plans to launch a second fund next year. 

According to Farrukh Ansari, founder and CEO of Ijara, PEMF will be fully deployed around August or September. The fund’s second deal is currently being finalized and is expected to include a $20-25 million investment in a UK-based group that aims to establish 250 pharmacies across Pakistan within five years. A second healthcare investment, also in the pharmaceuticals space, is in due diligence.

“It’s difficult to coordinate deals in Pakistan because most of the companies that are doing well belong to family businesses that are not aware of how private equity works,” Ansari told AVCJ. “Fortunately, the families’ third generations are coming back to Pakistan after completing their education abroad and they have a completely different mindset. That’s how we are entering into our transactions – the new generation understands the value of private equity.”

Ijara’s parent company, Ijara Group, began operations in 2000 offering advisory services in the local M&A market. Excluding Quick Foods, it has contributed to 19 company acquisitions in Pakistan to date as either an advisor, investor, or manager of special purpose vehicles. This activity included participation in the acquisition of Johnson & Johnson Pharmaceuticals’ Pakistan business in 2015.

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• Topics
• South Asia
• Consumer
• Buyouts
• Pakistan
• M&A