SM presents: Today’s Challenge: Tomorrow’s Opportunity...Today’s Challenge: Tomorrow’s Opportunity 1 As capital becomes scarcer in Western markets, shrewd private equity firms

Transaction Services

Citi OpenInvestorSM presents:

Today’s Challenge: Tomorrow’s OpportunityA paper on the Middle East’s Limited Partner environment

Today’s Challenge: Tomorrow’s Opportunity 1

As capital becomes scarcer in Western markets, shrewd private equity firms target other regions, especially the Gulf. To help you understand some of the nuances of fundraising in the Middle East, this article brings you a selection of insights from leading industry and regional experts.

Airport departure lounges and Gulf hotel lobbies are ever busier with private equity practitioners seeking to persuade Middle Eastern investors to back their funds. Voices, with a variety of accents, articulate numerous reasons why LPs — the Limited Partners who invest in private equity funds — should go beyond listening and sign on the dotted line.

There is no shortage of reasons why practitioners are looking across borders to source investors. Preqin, a leading private equity research group, has just issued data highlighting the average time taken to close private equity fundraisings in the most recent quarter is 13-18 months. Less than 30% of closed funds were able to do so in under a year.

Joe Patellaro, Managing Director, Global Head of Private Equity Services for Citi Transaction Services, says “Raising institutional capital has become extraordinarily difficult. Today is more challenging than in recent years. What used to be a six to 12 month fund-raise is often stretching out to 15-18 months. Consequently, managers are looking beyond their borders to raise their money.”

The attractions for international GP’s to look towards the Gulf are obvious.

Kamran Anwar, Head of Private Equity Services EMEA at Citi Transaction Services, says, “The Gulf region is perhaps the only one in the world with sustained current account surpluses. This trend coupled with low domestic absorption capacity means that investible surpluses should, generally, be quite high.”

The attraction for Gulf-based investors to back private equity funds from afar can be mutual. For Gulf investors, there is always appetite to diversify investment capital; they like access to deal flow in markets where they maintain an affinity — it might be where they studied in younger days; where family members are today or where they control various property interests — and they like finding stable homes for capital in uncertain times.

Anwar adds, “Eventually the deciding factor around investment would be a commercial and financial one like it would be with any other LP. The difference lies in how you tap the pools of the capital.”

Accessing capital remains an evergreen industry issue. Patellaro says “It is getting harder. Expectations constantly rise and there is growing regulatory pressures on funds which cannot be under-estimated. Whether you are a $50m; a $500m or a $5bn fund, you need to focus on what you do best and that needs to be the raising and investing of capital.”

Michael Robin, Managing Director, Citi Private Bank, says “We have clients in China, Asia, Lat Am and the Middle East wanting to increase their exposure to private equity. The choice they have is significant and the onus is on the funds to really stand out in terms of their competence and demonstrating values aligned with the interests of their potential investors.”

There is certainly no shortage of sources of capital from the Gulf region, with new initiatives emerging all the time. For instance although it is far too early to judge what impact the region’s social and political changes will have had, if any, on the allocations to international private equity funds, one area of growth are the emerging social insurance and pension funds.

These institutions are seeing budgets expanded as the Gulf rulers provide more for local nationals. An increase in their reserves may prompt a review of their assets, acting as a catalyst for increased allocations to private equity. This is one of many themes we examine throughout this paper.

Introduction

Citi Transaction Services2

The first challenge for new entrants to this market is to try to understand the unique landscape of the region. Some call it the Middle East; others MENA — representing the Middle East and North Africa — but, those with a fundraising focus are most likely to target the Gulf.

This is shorthand for the six members of the Gulf Co-Operation Council, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, who’s two most well-known Emirates, are Abu Dhabi and Dubai. Anwar adds, “The GCC cannot be viewed as an amorphous mass. There are in-country priorities, differences and investment styles that need to be given due consideration.”

Trying to navigate the various sources of capital from within each of these centres is undoubtedly challenging. Citi has a

longstanding presence throughout the emerging markets in general, and the Middle East in particular — over 50 years, and has proven expertise in helping companies and investors navigate the region. So what do they need to do to be successful?

The best GPs will need to literally “change their mind-set,” to be effective in the region according to Richard Street, Managing Director, Head of Investor Client and Sales Management EMEA at Citi’s Transaction Services. A local partner — such as Citi — with a proven track record and innate understanding of the landscape can be critical to successfully navigating the region.

The box below outlines the different types of investors you might seek to target from the region. This paper will examine what unique characteristics each of these four investors bring to bear.

Different types of investors

Different types of investors: Four groups to target in the Gulf

Government Investment Firms These are the organisations labelled sovereign wealth funds by the press. These organisations are often set up with a specific mandate to deliver returns for future generations, using proceeds from natural resources trade surpluses. Examples include: Qatar Investment Authority, Kuwait Investment Authority and the Abu Dhabi Investment Authority.

Social insurance and pension funds These organisations have been investors in the domestic markets/companies for many years. Internally they are reviewing their returns profile and re-examining asset allocation with a view to considering alternative asset investment opportunities. Examples include Government Organisation for Social Insurance in Saudi Arabia or the Abu Dhabi Retirement and Pension Fund.

Educational endowments This pool of capital is emerging and will increase meaningfully due to socio-political changes in the region. Examples include King Abdul Aziz University in Saudi Arabia (KAUST), which announced an endowment of US$10bn, one of the largest in the world. It is currently difficult to accurately calculate how much this emerging pool of capital may have in reserves, but there are certainly a number of universities in the region that are worth exploring. The American University system in Beirut, Sharjah and Cairo are examples.

Merchant families and their investment offices The wealth creation in the past ten years for the leading families has been unprecedented. However, there are also many families who are undergoing a generational shift and facing up to the challenges of re-structuring following over exposure to the real estate sector.

Trying to navigate the various sources of capital from within each of the Middle East’s centres is challenging. The best GPs literally need to “change their mind-set,” to be effective in the region.


Brand names like QIA in Qatar; ADIA in Abu Dhabi or the KIA in Kuwait are visited by countless GPs seeking their imprimateur of support. The number and variety of sovereign wealth funds is growing all the time. It is not unusual for each market to have multiple practitioners, all operating to different nuances, and expecting GPs to understand their distinctive features.

Street is optimistic for the best GPs who target these sources of capital. He says, “If you have the right ideas and are able to present them well, you will get in front of the right people. Those GPs who bring proven experience, a strong track record and the right approach will achieve backing from the investors in the region.”

He argues the relationship between GP and LP — especially when they are a sovereign wealth fund — is everything. “In the Middle East the trust and the relationships with the LP is central to the GPs business model,” he says before adding, “In the West, access to the best deal (flow) forms the backbone of the firm. That is different in the Middle East where the relationship with the LP is critical.”

So the GPs coming to the region to access capital need to change their mind-set to be effective. Furthermore some GPs — especially those who are running money of sufficient size — need to consider setting up representative offices out here. Those who have, such as Carlyle, KKR and Blackstone, have all benefited from a growing appetite

Government investment firms


from within the corridors of the sovereign wealth funds for their products. The great majority of those fundraising are smaller operations who can make use of Citi’s leading Middle East network.

There are some current themes which are particularly pertinent to the types of conversations you will have with sovereign wealth funds. Street observes the funds are recruiting more and more professional money-managers from international locations to support the locals.

“These funds include some of the smartest and professional strategists and asset allocators in the market,” says Street. He also notes the growing appetite for these funds to negotiate preferential terms and seek co-investment opportunities. The days when they were passive investors in other

people’s funds are passing. Instead they are looking for more and more access at a granular level.

Anwar goes further, saying the GPs need to respond to the LPs in the context of the global nature of private equity. He notes, “The GPs need to be flexible in outlook. The larger LPs are certainly moving away from blind pools of capital to transition to more managed programmes where the LP has some control over the use of its money. You need to provide a broader range of programmes to capture the interest and attention of the LPs.”

Qatar Investment Authority — the power of long term planningThe headlines surrounding Qatar’s determination to bid for and win the right to host soccer World Cup in 2022 as well as its public attitude to ensure it gets value for its investment in Xstrata demonstrates a Gulf state growing in confidence and stature.

Kamran Anwar, Head of Private Equity Services EMEA, Citi Transaction Services: “You need to look back to the decisions taken by the Qatari leadership in the mid to late 1990s and early 2000 as the genesis for today’s success. They showed far sighted vision to invest in their gas distribution capacity. That came on stream in recent years providing Qatar with the means and position to develop one of the strongest government investment firms in the region.”

The chief executive and chairman of the QIA is Sheikh Hamad bin Jassem bin Jabr Al Thani. The QIA does not publish its holdings in the market but is known to have taken direct stakes in Royal & Dutch Shell, the energy business; a 26% stake in Sainsbury’s, the UK supermarket as well as control of Paris St. Germain, the French soccer team.

Behind the headlines is an organisation which is expanding the number of third party private equity funds it invests in, as well as taking more of these direct stakes in underlying companies. Anwar says, “If the QIA is an investor, you have the government of Qatar as a client. That presents a powerful opportunity,” which can open up many other avenues for the successful GPs and businesses who secure this type of backing.

The relationship built between GP and LP — especially when they are a sovereign wealth fund — is everything. In the Middle East the trust and the relationships with the LP is central to the success of the GP.


The social insurance and pension fund group is anticipated to undergo the most significant change in terms of asset allocation over the coming years. These funds have been investors in domestic and regional companies for many years. They are particularly active in Saudi Arabia and Kuwait where they invest in a broad cross-section of industries.

“Look at an organisation such as the Kuwait Fund for Arab Economic Development. They are a long termist, mature provider of capital to many funds, who should be on the horizon for GPs seeking to access this type of capital,” highlights Citi’s Anwar.

Forward thinking GPs might well seek to begin a process of communicating with these funds

now with a view to gaining a share of mind and commitments in times to come. The impact of the social, political changes throughout the region is yet to be fully worked through, but it is the social insurance firms which are going to be given an increased mandate to distribute government funds to the general populace.

Specialist funds focused on key sectors — such as healthcare and technology — may perform well as these fields are seen as being of strategic importance by the governments in questions. Anwar says, “GPs which are able to showcase intellectual capital in key sectors — to transfer knowledge, for instance in effective healthcare management or education — will be of particular interest in these regions.”

Social insurance and pension funds


University and other educational endowments are new and evolving providers of capital. The leadership of the region, throughout each Gulf state, has made significant commitments to boosting education provision and spending now and in the future.

The existing establishments are already big investors into private equity funds, but the new ones who come on stream with large government backed financing, will have significant capital to invest into GP funds in times to come.

Anwar says, “This is a particularly exciting part of the market at the moment. There is a big skills transfer element that needs to happen. For instance: If a GP already has long term, proven, relationships with US endowments, what are the lessons to be shared?”

He also points out the scale of opportunity for major educational institutions to come to the region and share their knowledge. There is an opportunity for established university endowments like Yale University or Harvard to sit with educational institutions in the region.

Educational endowments


The lines have always been ambiguous between the business interests of a merchant family and their investment interests. If a GP is ever privileged enough to be invited into the majlis — a room in the homes of Gulf nationals — the conversation will traverse domestic, family, business and investment affairs.

Mills explains, “We work for royal families and merchant families who are ultra high-net-worth individuals. Nonetheless the credit crunch has changed their perspectives towards investing in private equity.”

He points out that historically these groups might have allocated 10% or more of their investable assets into private equity. However, during 2008-2012 they have not received the distributions they would usually expect to be returned from their private equity investments due to GPs lengthening the hold period of their underlying investments. Investors have consequently scaled back future commitments pending return of invested capital and harvesting of profits.

It is only when these recent investments have been digested that a new generation of funds will be able to receive backing, which is likely to start happening in 2013 and beyond with pace accelerating into the second half of this decade.

“There are exceptions of course. We raised money for a GP in 2008 who sought to raise money for the first time from the region. During the past four years they have delivered on what they promised and are now going out into the market to raise a second fund. They are going to be well supported by the region,” says Mills.

It is not just the credit crunch which is impacting the outlook of the region towards investing in private equity. Catherine Weir, Managing Director and CEO of Citi Global Family Office Group, comments, “Our research says there is US$6 trillion of assets controlled by the leading families in the world. We have more data highlighting that

US$5 trillion of this will change generational hands in the coming ten years.” This is going to have a significant impact on how each family’s allocations and models shift.

Weir highlights how globalisation is core to these families whose businesses and investments span multiple markets. She says the way they are managing their wealth itself is evolving and the more alert GPs will be aware of this, as they hold the conversations to attract investment capital.

There is US$6 trillion of assets controlled by the leading families in the world and US$5 trillion of this will change generational hands in the coming ten years. (Citi Global Family Office Group)

Weir notes that a family office, typically, does five things. They:

1. Administer the core assets controlled by the family whether they are listed or private;

2. Run investment portfolios;

3. Run an alternative asset portfolio, including private equity, hedge funds and real estate assets;

4. Have foundations or philanthropic operations to oversee their charitable endeavours;

5. Will have various lifestyle assets and concierge requirements.

Of these the third wedge — the alternative asset portfolio — is something Weir believes is particularly important. She notes, “This is one part where the entrepreneurial spirit is kept alive. This is the area where younger members of the family are able to become accustomed to money management and allocation issues.”

Merchant families and their investment offices


The smarter GPs will be able to help these family offices demonstrate their affinity to the markets they are particularly interested in. A family may have an affinity with brands. As consumerism grows that will have an impact on certain businesses and so the smart GPs will ensure they connect on this level with potential investors as well as on the core proposition.

Weir argues that size continues to matter in terms of the size of the cheques sought by GPs from the region. She says, “If you can keep it bite-sized, do so. If you are able to offer these merchant families deal flow and persuade them they will be investing with a circle of like-minded investors, then that will go down well.”

There needs to be a particularly compelling reason for these types of investors to look towards investing in blind pools of capital. “Unless it is the only way to enter a market such as Africa or China, they are going to be more interested in other types of structures,” comments Weir.


Levant CapitalSalameh Sweis is the co-founder and Chief Executive Officer of Levant Capital. It has built its business by successfully sourcing relationships with institutional investors and about 25 family offices across the region. He says, “The political uncertainty in North Africa and the Levant has prompted increased government spending in the GCC, which is driving growth in the core businesses of many GCC families.”

These investors, he points out, are seeing tremendous growth in their operating cash flows and therefore their investable capital. They want to diversify internationally but they also want to further capitalize on regional growth by investing into long term assets in the region albeit a lot more selectively.

He advises to value and engage with the increased pool of talent working within these family offices. “These family offices are getting ever more sophisticated. The financial crisis means they are able to attract and retain talent from across the region and are therefore becoming more rigorous in their screening processes.”

He says they like to invest in private equity firms that are management owned and where the protagonists have sizeable commitments to their funds. He says, “Investors are sick of churn in GP management teams. They need to build trust through long-term relationships with the GP’s principals and are looking for increased interaction and a more flexible relationship with one another.”

The National InvestorOrhan Osmansoy is Chief Executive Officer of The National Investor (TNI) of Abu Dhabi. He has successfully raised traditional blind pool funds as well as capital to invest in transactions on a deal-by-deal basis. He says, “Providing co-investment opportunities is the killer app in the region at the moment.”

His first blind pool fund, TNI Growth Capital Fund, was raised with the support of nine regional family offices. It successfully originated and made a number of investments such as L’azurde and Depa. When it came to raising its next fund it partnered with KIPCO Asset Management Co. (KAMCO), which is one of the largest diversified investment companies listed on the Kuwait Stock Exchange, to launch the Etqaan Shari’ah Fund. This partnership, through the breadth of its relationships, provides the fund privileged access to deal flow.

Osmansoy says, “For those who stay the course during these times, Darwinism will hold them in good stead. TNI and KAMCO have strong relationships with government related entities, commercial banks and family offices in Abu Dhabi and Kuwait. Jointly, we bring privileged deal sourcing, a long-standing track record, disciplined post-acquisition company management and a clear focus on driving exits.”

Beyond the funds, there is also a thread of TNI’s DNA dedicated to doing club transactions on a deal-by-deal basis. The direct co-investment model helps bridge the gap between attractive investment opportunities and the limited institutional investment capital nowadays available for blind-pool funds. Osmansoy says, “The direct co-investment strategy is more prevalent in the MENA region compared to the U.S. or Europe. It is a direct response to the constrained liquidity and fundraising environments resulting from the economic slowdowns precipitated by the global financial crisis, which was compounded by what has been dubbed the “Arab Spring”. Generally, tighter liquidity conditions and fewer portfolio exit opportunities have made institutional investors reluctant to make long-term capital commitments into blind-pool private equity funds.”

Lessons from localsBelow are the perspectives of two regional GPs who have successfully accessed capital from merchant families.


1) ReturnsEach investor from the region will bring their own unique returns expectations. Mills highlights how returns expectations have reduced to more realistic levels in recent times, which he sees as positive evidence of the maturing quality of the region’s investor base.

In terms of what they are specifically looking for from their investments, he argues a good guideline is to seek to beat the parallel public equities performance. Mills says, “If you are running a fund investing in European companies, then you need to demonstrate a track record of returns that beat the public market equivalent at the very least. There needs to be some demonstrable illiquidity premium. ”

Nonetheless GPs should never under-estimate the region’s expectations for strong performance as the b0eginning of any discussion. Anwar says, “Many of these investors are astute businessmen in their own right. No amount of cultural finesse will overcome flawed business propositions or weak fund performance.”

2) Expansion togetherIt is perhaps the opportunity to grow businesses together that provides the most excitement to both GPs and LPs. Anwar says, “They [LPs] should be viewed as clients rather than just sources of capital. If QIA is an investor, you have the government of Qatar as a client. That presents a powerful opportunity.”

What might this mean in practice? The LP can become a purchaser of portfolio assets. Building a platform of investors from the Gulf gives GPs a wider pool to sell their businesses to in times to come.

Secondly, the Gulf LPs can be hugely supportive of GPs with portfolio businesses looking to expand internationally, especially into frontier markets. Anwar adds, “The Gulf region has been investing into China, India and Africa for decades. GPs who bring the

right outlook and are able to work well in the region can leverage off that track record and expertise as well.”

3) Commercial deal termsConsequently the Gulf’s investors understand exactly what they are able to bring to the table — capital, contacts and expansion opportunities — which are all compelling to a GP. So in return they are looking for more than just returns but to seek to enshrine long term relationships that go beyond the orthodox GP-LP contractual relationship.

In return they are looking to change the standard terms and conditions of historic LP-GP contracts. Mark Mills says, “Blind pool trusts are waning and this is certainly a hot topic of discussion. It might be about control over the deals they enter, the terms or it might be about the length of the investment horizon. For instance various investors in the region are at the very least wanting to cut ten years down to eight to obtain returns sooner.”

This approach may turn off a number of conventional GPs who are seeking more orthodox investors into their funds, but Mills recommends they are patient and not to dismiss this approach out of hand, especially if they are at the outset of raising capital from the region.

Mills continues, “Private equity is certainly on the up in the region. The interest levels are there but people have learnt the lessons of the credit crunch and some want to bring a different approach. These investors recognise there is a price to be paid for cherry-picking their individual deal flow, but can move quickly when they like an opportunity.”

This is prompting the emergence of more club groups or club deals. This is where the GPs will have a family of potential investors who have given a verbal indication about the level of commitment they are willing to make into a series of deals, but they maintain the right to decide whether to invest on a case-by-case basis.

“Regional investors like to see deal flow and they particularly like the option of deciding whether they are in a deal or

Expectations

No amount of cultural finesse will overcome flawed business propositions or weak fund performance


not on a case-by-case basis,” says Mills. “From a GP perspective you might have to seek to raise more than you need as not everyone will come into each deal - this is an approach which appeals to investors.”

Anwar sums it neatly. “There is a strong entrepreneurial culture in the region. These are astute businessman who will demand greater transparency. They want to look deeper into portfolio companies, expect to negotiate on fees and receive co-investment opportunities.”

4) Communication and levels of transparencyWhatever type of investment is ultimately made, the expectations on communication is significant. Smarter GP investors know they cannot simply turn up to meetings, expect to deliver their presentations and walk out with a cheque. It simply does not work like that.

“It is about being present and proactively engaging with this audience and being able to discuss the issues they wish to address. LP investors from the Gulf are interested in technology transfer; they are interested in knowledge transfer. They want to invest with those funds that are going to be committed to the industry for decades to come and are willing to share their experiences,” says Anwar.


So what thoughts does Citi have for those who are looking to raise money from the Gulf region? Below we share some of the key tips for effective fundraising in the Gulf that should be considered and which Citi has built up over many decades of operating in the region.

1) Review your philosophyMany GPs have been brought up and conditioned to believe the sourcing of the deal; the crafting of the terms and the running of the business to exit are the basis for all sustainable private equity firms. Not so. The relationship with your investor — especially if they happen to be from the Gulf region — needs to become the backbone to your thinking if you are to raise significant amounts of capital from the region. This is a mind-set shift which all firms in a similar situation have undergone.

2) Learn from the experts: Speak with the GPs from, and of, the regionThere are a growing number of well-regarded, regional investment firms. The likes of Abraaj Capital have demonstrated just what can be achieved off the back of deep and meaningful relationships with investors from across the region and beyond. They are not alone. Go and speak with regional private equity investors to learn their lessons and style of investor interactions. Who knows — perhaps you will find yourselves helping each other.

3) Demonstrate commitment: Keep demonstrating commitmentExpect to become a Gold card holder of the Gulf’s national airlines, even if you travel economy. Unless you are willing to regularly visit your investors — at the very least on a

Tips to succeed in the Gulf quarterly basis — do not be surprised if they select a different investor over you. As with all sustainable relationships, they demand regular nurturing, new ideas, fund performance reviews and a “first look” at opportunities. This means visiting your investors, becoming familiar with their offices, assistants, associates and if you are doing very well, families. “Proactive, value-added relationship management has been the hallmark of successful players in the region” summarizes Anwar.

4) Anticipate requests to co-invest and for greater levels of transparencyThere are two types of investors from the MENA region. There are a growing number of international, professional, money managers from all over the world who are working inside Gulf investors. Then there are the local Middle Eastern investors, who are experienced businessmen and entrepreneurs in their own right. Both are demanding ever greater levels of transparency. They want to gain a deeper understanding of portfolio companies; to see co-investment opportunities and to absorb knowledge from you.

5) Offer secondments or internshipsWhen you have begun to develop a genuine rapport — whether a commitment has been made or not — do not be afraid to offer secondments or internships to LP team members. Relationship building is key. Demonstrating a willingness to invite these groups to second or intern members of their team into your own team highlights a will to be transparent and to show a commitment. This sort of activity is likely to be highly regarded and well received by the Gulf investors.


The Gulf, blessed by its reserves of oil and gas, is bringing an ever stronger focus on deploying its ensuing capital in an effective fashion. Inevitably it will emerge as an ever more popular destination for those GPs on the fundraising trail.

What has begun as an increasingly regular journey for many GPs during the currently depressed period of general fundraising may ultimately prove to be a blessing in disguise. For those GPs who are able to build links and strengthen their investor base in the region, they will find long-term supportive investors who are excited at the emerging opportunities over the next decade.

These GPs who make the effort have cause for optimism given the fundamental appetite — enjoyed across the region — to invest into private equity opportunities.

However, those who succeed will be those who have the foresight to harness the cultural differences and build a sustainable franchise in the region. This is about constantly demonstrating your commitment to the region and being an advocate for it.

Naïve GPs who believe the Gulf region is filled with easily accessible money which asks no questions are in for a rude awakening. The region has undergone significant professionalization in recent decades and operates to high standards.

For those who can meet them, they will find a loyal and supportive investor base, but it will take decades to truly realise your potential in this fascinating region.

Looking forward

Success will come to those who have the foresight to harness the cultural differences and build a sustainable franchise in the region


Orhan S. Osmansoy, Chief Executive Officer, The National Investor (TNI) Orhan Osmansoy is the Chief Executive Officer of The National Investor (TNI), an Abu Dhabi based investment and advisory company. TNI is one of the leading capital markets players in the MENA region and an active investor in the local markets. The firm comprises four strategic business divisions covering investment banking, private equity, asset management, and principal investments including real estate. TNI was incorporated in 1994 and is licensed and regulated by the UAE Central Bank and the Dubai Financial Services Authority. TNI was ranked by Banker Middle East as ‘Best Private Equity House in the Middle East’ and by Euromoney as ‘Best Equity House in the UAE’.

Orhan has over 20 years of experience in investment banking, private equity, equity derivatives, and activist investing. He has been involved in nearly AED 10 billion worth of equity and debt transactions in the GCC and has spearheaded the expansion of TNI throughout the GCC. Prior to joining TNI in 2004, he was a Managing Director at Dexter Capital Group, a London-based investment firm that specializes in strategic block investments in Europe, where he was responsible for the origination, evaluation, and execution of activist and special situations investment opportunities.

Salameh Sweis, Chief Executive Officer and Co-founder, Levant CapitalSalameh is Chief Executive Officer of Levant Capital, which he co-founded in 2006. He is involved in managing all aspects of the firm: he oversees day-to-day operations, chairs its investment committee, serves on the board of each of its portfolio companies, and plays an active role in managing the firm’s relationship with its investors. Salameh currently serves on the boards of Al-Raya for Foodstuff Limited (Saudi Arabia), Ata Invest (Turkey), and Modern Emirates Heavy Cranes (U.A.E.), amongst others.

He previously served on the board of APR Energy (LON: APR). Salameh has more than a decade of experience investing in and managing private companies in the Middle East. He started his career at Goldman Sachs in New York and holds a B.S. in Engineering from Rensselaer Polytechnic Institute (cum laude).

Guest contributorsWe would like to express our sincere gratitude to all our contributors for their invaluable insight.


Citi contributorsKamran Anwar, Head of Private Equity Services EMEA, Citi Transaction ServicesKamran Anwar joined Citi in 1993 in Salomon Brothers’ Investment Banking division in New York where he focussed on Mergers and Acquisitions deals for large cap companies. He has since worked in a variety of products and regions including South Asia, the Middle East and Europe. He was the M&A Advisory Head for the Middle East based in Dubai where he worked closely with a number of regional governments on deregulation and private sector participation including leading some notable privatization deals in the Levant and Pakistan. Subsequently he led Citi’s proprietary M&A efforts for the GTS business in EMEA based in London where he was part of the core team that lead Citi’s investment in Akbank in Turkey. Kamran has worked closely with several private equity firms across the EMEA region. He has also held senior positions in corporate finance, strategy and cash management.

Mark Mills, Managing Director, Head of Investment Counselling MENA, Citi Private Bank Mark Mills is a Managing Director and Head of Investment Counselling for Citi Private Bank, Middle East and North Africa (MENA). In this function, Mark manages a team engaged in sourcing, originating and structuring traditional and alternative investments, liquidity products, structured investments and hedging solutions across asset classes for Citi Private Bank’s MENA franchise.

Prior to this appointment, he was a Portfolio Manager specialising in Emerging Market Equities for Citi Asset Management. Mark was responsible for the quantitative portfolio construction process. Mark has been at Citi for 12 years and prior to this was at Legal & General Investment Management working with corporate pension fund clients.

Michael Robin, Managing Director, Global Head/Financial Sponsors Lending, Citibank Private BankOversees credit products tailored to the needs of Private Equity Funds, related management companies, and their sponsor groups. His coverage sector also lends to management companies of hedge funds and hedge fund of funds. Michael was previously a senior lender in the Private Bank’s Structured Lending Division, providing tailored financing solutions for high net worth clients and their businesses/assets, including real estate, aircraft, securities and unsecured with a special focus on private equity firms and their sponsors.

Prior to joining Citigroup in 1995, Michael held various positions at Natwest Bank, Fleet Bank and Barclays Bank in middle market lending. Michael holds an M.B.A. in finance and public accounting from the Simon School at the University of Rochester.

Richard Street, Managing Director, Head of Investor Client & Sales Management EMEA, Citi Transaction ServicesBased in Dubai, Richard leads the investor client and sales management business for EMEA. Previously, he was responsible for the management and development of Citi’s Securities and Fund Services capabilities in the Middle East were covering Citi’s Issuer, Intermediary and Investors capabilities and the client relationships for these product ranges.

Catherine Weir, Managing Director, Chief Executive Officer, Citi Global Family Office GroupCatherine established Citi Family Office Group in 2010 to focus on serving the needs of the world’s leading families. She is also Vice Chairman, Citi Institutional Client Group, EMEA; Chief Country Officer (CCO), Switzerland; CCO Monaco and Chairman of Citibank Switzerland, AG. She has held several senior positions at Citi including CEO, Citi Private Bank EMEA and Head of ASEAN Markets and Banking: Singapore, Indonesia, Philippines, Vietnam, Thailand, Malaysia, Brunei.


Notes

Citi Transaction Services www.transactionservices.citi.com

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About Citi Private Equity ServicesCiti Private Equity Services is a leading global provider of accounting, reporting and administration to the private equity and venture capital industry. As a private equity administration industry pioneer, exclusively focused on private equity funds and investors for over 18 years, Citi Private Equity Services client service teams consist of professionals with robust industry knowledge and experience. The business currently administers over 750 funds and has $160 Billion+ of Committed Capital Under Administration.

About Citi OpenInvestorSM

Citi OpenInvestor is the investment services solution for today’s diversified investor that combines specialized expertise, comprehensive capabilities and the power of Citi’s global network to help clients meet performance objectives across asset classes, strategies, and geographies. With an on-the-ground presence in over 95 countries and over $12 trillion in assets under custody, Citi offers award winning service and unmatched scale. Citi provides institutional, alternative and wealth managers with middle office, fund services, custody, investing and financing solutions focused on clients’ specific challenges, customized to their individual needs. For more information, visit openinvestor.transactionservices.citi.com

http://www.transactionservices.citi.com

http://openinvestor.transactionservices.citi.com

SM presents: Today’s Challenge: Tomorrow’s Opportunity...Today’s Challenge: Tomorrow’s Opportunity 1 As capital becomes scarcer in Western markets, shrewd private equity firms

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