Lumina event at Waldorf Astoria, DIFC
Lumina Capital Advisers hosted its 2024 cross-border insights breakfast event at the Waldorf Astoria, DIFC, hearing from an excellent panel consisting of Ken Calleja from Rothschild & Co, Taimoor Labib from Affirma Capital and Rashid Siddiqi from Ruya Partners. A hugely insightful, impactful and engaging discussion.
The morning was a fantastic opportunity to catch up with so many colleagues and friends. We hugely appreciate your support and thank you for making the event such a success.
Some of the key panel discussion points were:
Outlook: Each of the panelists had strong 2023s – but see more deals (M&A, Private Equity and Private Credit) at the same, or higher, average deal values in 2024
Deal activity: Will continue to be driven by the mid-market, with rapid growth in private equity and private credit, this year;
75% of all deals seen last year were in this mid-market space, with sovereign wealth, private equity and strategics all highly active
But the mid-market dynamic is different in the region, where deal sizes average $30-200m, (Europe $150m-$350m)
Mid-market deals are recognised by governments as more important than ever to deliver on their strategic agendas
MBOs: More MBO opportunities seen in the last year than the previous 10 due to broader funding availability. Private credit is finding its role as a key alternative funding solution
Localisation of skills, knowledge and people: Is crucial – whether you’re a PE fund seeking to transact or a corporate seeking access to regional growth opportunities
Valuations: UAE and KSA valuations are much more reasonable than they were 18 months ago. Why? Reality checks, fundamentals based valuations, ‘need’ to transact, consolidation in core areas of expertise
Exits: PE and PC funds have more exit options today - Tadawul was highlighted as a highly viable option, but also MBOs, trade sales
Need for PE exit planning to start pre-investment
LPs: International LPs still need some convincing on purely regional funds.
- However regional LPs are increasingly focused on investments’ ‘impact on the GCC’ – and not just not just financial returns. Expect more focus here in 2024.
