IDD Daily Updates and Restructuring Alert Weekly Updates, our email alerts
UBS Launches JV In Gulf
The venture with MerchantBridge, a direct investment and private equity company, is expected to raise $500 million.
November 17, 2008
UBS Global Asset Management and MerchantBridge, a direct investment and private equity company based in Riyadh, Saudi Arabia, have launched a joint venture to develop investments in the Middle East.
The two firms expect to raise $500 million in investment capital. Together, the firms have contributed $80 million in seed capital, or $40 million from each partner, and they expect to make their first investments in first quarter of 2009.
The venture, named MerchantBridge-UBS Private Equity, will make direct investments in the energy and financial-services sectors. Based in Dubai, MerchantBridge-UBS will be led by Basil Al Rahim, founder and managing partner of MerchantBridge.
Al Rahim said, “Despite the challenging global environment, we believe the Middle East region is well positioned for strong growth. Many of the region's leading corporations will continue to seek business opportunities within their borders and regionally, which will allow private equity to play an important role at a time when other sources of capital are becoming increasingly scarce.”
John Fraser, chairman and chief executive of UBS Global Asset Management and chairman of UBS Saudi Arabia, said, “The recent success of our infrastructure business has provided a great platform for us to expand our alternative offering into private equity. The new joint venture combines our global resources and direct investment experience with MerchantBridge's local knowledge and private equity track record.”
UBS also announced on Monday that the Swiss financial services giant will cut bonuses for senior managers and has changed the compensation structure to reward long-term successes. UBS opened UBS Saudi Arabia in July.
For more information on related topics, visit the following:
