Abraaj Capital targets Southeast Asian natural resources

"Indonesia, given its size, growth and the history of deals in the resources and mining sectors, is obviously the most important market for us in the region," Aman Lakhaney, a principal at Abraaj Capital Asia, told Bloomberg. Education, healthcare, logistics, financial services, manufacturing and retail are also of interest, he added.

Abraaj, the largest private equity firm in the Middle East, set up its Singapore office in January and will commence standalone operations in India in March. Since 2006, the firm has been working in the country through a joint venture with Sabre Capital Worldwide.

Indonesia is the largest exporter of thermal coal with proven coal reserves of 5,529 million metric tons at the end of last year, according to BP's Statistical Review of World Energy. It is well positioned to serve the energy needs of rapidly growing economies like China and India.

Private equity firms have already capitalized on opportunities in Indonesian natural resources. Northstar Pacific, which closed an $820 million fund earlier this year, secured its largest deal to date with the acquisition of Buma, Indonesia's second-largest mining contractor, in 2010. The private equity firm bought 40% of Delta Dunia for $350 million and used it to acquire Buma, with Government of Singapore Investment Corp. (GIC) and TPG Capital participating as co-investors.

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• Topics
• MENA
• Southeast Asia
• Industrials
• Investments
• MENA
• Southeast Asia
• Commodities
• Indonesia
• Northstar Group
• The Abraaj Group