How to Find the Best Private Equity Firm in Dubai

by Kristen White Blogger
The private equity markets in Dubai are not as mature as the markets in the US or UK, but they are on the path toward achieving that goal. Dubai has been attracting a lot of foreign investments, and this has led to the sudden existence of many private equity firms in the country. 

So, how do you find the best private equity firm in Dubai? Here’s how.

What Is Private Equity?

When investors invest directly into private companies, it is called private equity. Many firms bring together such investors with potential investment opportunities, and such firms are private equity firms. Sometimes the investment size is large and may require funds from more than one investor. This is where the role of private equity firms comes into play.

With Dubai relaxing its regulations and legislation, many new businesses are springing up, and the need for private equity has never been higher. Picking the right firm can help in multiplying your investments manifold. Follow these steps to select the best private equity fund in Dubai.

The Team

Before you part with your money, it is best to look at who is going to manage it. Get to know the investment team who will be scouting projects and investing your funds into them. Background checks, experience, and past performance are good indicators of future achievements.

Another important factor to consider is the cohesiveness of the team. Ok, so you have a line of highly experienced and successful fund managers, but if they don’t get along, it can lead to disaster.

The Methods Used

Once you like the team, the next step is to ask them about the methods they will be using to scour new projects, their research methodology, investment process, etc. Consider these points.

Deal Scouring Process – Reviewing the deal scouring process is crucial. With so many private equity firms, fund managers need to have deep network connections that enable them to find deals before competitors.

Investment Strategy – Once a project is found, the investment strategy that the fund manager uses is important. They may not want to pour all the fund in one go, but instead in a phased manner. This will minimize the risk investor’s risk, which should be the fund manager’s priority.

Value Creation – How do the fund managers measure the value creation in an investment opportunity? After all, the purpose of investment is the creation of value to investors. One method is through financial engineering, which adjusts the capital structure to boost equity returns. 

Revenue growth is another way of value creation. This can be achieved through operational improvements, costs reductions, and organic growth. These strategic operational changes will result in improved financials and allow a higher exit price for the best private equity firm in Dubai.

Track Record

Measuring the firm’s past performance in terms of success history, experience level, and investment horizon can be good indicators of future performance. Firms that offer quarterly returns may not be such a good idea as private equity investments need time to generate returns. Also, a very long investment horizon, like 10 years, may not be attractive to investors looking at slightly quicker returns.


It is also important to compare the firm’s performance to industry benchmarks. In isolation, a firm’s returns may seem to have outperformed, but that could be because the markets in general outperformed. Comparing firms to peers for these specific years will help understand where they stand at an industry level.

Unrealized Portfolio

A private equity firm is as good as its unrealized portfolio. When raising funds for new investment, if the firm can leave its investments unrealized, it provides a meaningful value proposition to investors. So, it is important to know if the firm has the needed private equity fund in Dubai to invest in projects without divesting from others.

Investing through the private equity route in Dubai has a potential upside if you can find the right partners to help you. Many private equity firms in Dubai offer opportunities galore, and with our guide to picking the right one, you can see your investments grow.

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About Kristen White Committed   Blogger

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Joined APSense since, August 19th, 2016, From Chicago, United States.

Created on Oct 15th 2019 01:46. Viewed 485 times.


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