With bank lending to companies in the Middle East and North Africa (MENA) region becoming increasingly conservative, Private Equity (PE) companies are fielding more inquiries about investment partner opportunities. Companies in the MENA region, however, look for a set of values in investors that differs from those sought by their counterparts in the West. Chief among the differences is a preference for minority, including large minority, stakes in growth capital deals.
For PE firms accustomed to the typical leveraged buyout model of the West, this distinction can appear to reduce transparency. This article, produced by Knowledge@Wharton and sponsored by Amwal AlKhaleej, looks at what lies behind the MENA companies’ preferences and what they mean for potential PE investors in the region.Download Is-the-Growth-Model-the-Right-Model