Unicorn makes second US investment in a month(2)

The Bahrain investment firm has joined the throng of MENA buyout firms continuing doing deals in the West despite the credit crunch.

Bahraini investor Unicorn Investment Bank has bought an 80 percent stake in Victron, a US electronic supply chain manager, for an undisclosed sum.

Victron provides electronic supply chain management to industries including medicine, automotives, and wireless telecoms.

The investment is Unicorn’s second buyout in the US in the past month following its acquisition of a 75 percent stake in micro chip designer and manufacturer Open-Silicon in December.

According to its website, Unicorn is looking to raise a $150 million mid-market fund.

MENA private equity firms have continued to invest while many of their large buyout peers in Western markets have stalled following the credit surge. From January to November MENA firms provided only 2.8 percent of global deal volume, but in the months of October and November last year they accounted for 17.7 percent of global deal volume, according to data provider Dealogic

Unicorn can also count in its favour the scale of its target deals.

The mid-market has proved resilient with banks still prepared to lend the relatively modest sums required to leverage these deals, providing the businesses demonstrate sound finances.