Aliph Capital's Al-Lawati on Boosting SME Investment

The video discusses a private equity firm's strategy focusing on mid-market companies in the GCC region, emphasizing digital transformation. It highlights the geographic focus on Saudi Arabia and UAE due to their economic size. The firm aims to rebuild confidence in the private equity sector, affected by past events, with government support and international interest. Expected returns are around 20-25% IRR. The video also covers competition, economic factors like oil prices, and the impact of interest rates, noting that the firm is less affected due to its growth segment focus.

What is the primary focus of the fund's investment strategy in the Gulf region?

• Large multinational corporations

• Mid-market companies with digital transformation potential

• Startups in the technology sector

• Real estate development projects

Which countries are included in the fund's GCC focus?

• Bahrain, Kuwait, Qatar, Saudi Arabia, UAE

• Iran, Pakistan, Afghanistan, India, Bangladesh

• Oman, Yemen, Jordan, Lebanon, Iraq

• Egypt, Libya, Tunisia, Algeria, Morocco

What was a significant challenge faced by the private equity industry in the Gulf region?

• Lack of investment opportunities

• A major setback due to a bad actor

• Excessive government regulation

• High competition from local firms

How have governments in the Gulf region supported private equity?

• By limiting foreign investment

• By providing capital and supporting funds

• By offering exclusive investment rights

• By reducing taxes on private equity firms

What economic factor is crucial for the region's private equity activity?

• Tourism growth

• Manufacturing expansion

• Oil prices

• Agricultural output

How do higher interest rates affect the private equity growth segment?

• They reduce investment opportunities

• They lead to higher valuations

• They have minimal direct impact

• They increase reliance on leverage

What is needed for the private equity market in the Gulf to grow?

• More international competition

• Higher oil prices

• Increased capital and realized returns

• More government restrictions