Falling commodity prices and a terrorist attack in Tunisia haven't prevented the private equity Abraaj Group's institutional investors, pension funds, and development finance institutions from making a total $1.37 billion investment, mainly in Algeria, Egypt, Morocco, and Tunisia.Arif Naqvi, Abraaj's founder, sees middle class consumption doubling in the region between 2014 and 2024. Consequently, what the fund looks for is well-managed, mid-market businesses where the fund can influence strategy and growth in fields that benefit from the growing middle class. These fields include: healthcare, education, consumer goods and services, business services, materials, and logistics.
Remember when Lucy in the "Peanuts" cartoon said what she wanted as a gift was real estate. Grandparents might look beyond the latest toys and video games advertised on TV and give their grandchildren a stake in a fund with emerging market investments. It won't be a favorite gift now, but when the high costs of college and grad school come around, kids (and their parents) will be very grateful.
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