Chart of the week: Middle East breaks debt capital drought with $1bn fundraise

Private debt fundraising in the Middle East swings between feast and famine compared with Latin America.

 411

Click here for a larger version

 

NBK Capital Partners held the first close of its NBK Capital Partners Mezzanine Fund II on $110 million this week.

The Dubai-based firm said demand was strong from institutional investors, but debt fundraising in the Middle East varies wildly. Since 2010, only 2012 and 2016 have witnessed a final close, according to data from PDI Research & Analytics.

When compared with another developing region, Latin America, this volatility becomes clear. Despite experiencing a dip in fundraising in recent years, Latin America proved attractive in 2015, with $330 million raised. Meanwhile, the Middle East’s debt capital drought was in its third year in a row without a final close.

The exception can be seen in 2012, when Latin America attracted just $20 million compared with the Middle East’s $1.07 billion.

More Middle East-focused capital has been raised in less than six months this year, than in any other year since 2010. Only one fund closed in each of the regions – with First Israel Mezzanine Investors raising $1.1 billion for Middle Eastern investments, and Ashmore Investment Management amassing just $435 million for Colombian infrastructure investments.