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Swicorp spins out private equity unit

Swicorp has completed the spin-out of 51% of its private equity arm, creating a new independent investment firm focused on opportunities in the Middle East and Africa. SPE Capital Partners, as the new firm will be known, will continue to be operated by its existing teams, who collectively have invested nearly $1 billion since Swicorp launched the business in 2005.

“From today, we are independent,” said Nabil Triki, SPE Capital’s Managing Partner. “We will direct our entrepreneurial spirit, which remains at our heart, towards exploring new ways of fostering growth, while continuing to invest in a way that blends our discipline and conviction with our growth-focused philosophy.”

According to the firm’s website, the private equity business makes investments in the Middle East and North Africa based on two distinct investment themes—one targeting opportunities in consumer-related sectors such as consumer goods and retail, consumer services, healthcare and light industrial and the other targeting opportunities in energy and energy intensive industries. Typically, the firm pursues equity or equity-related investments ranging between $10 million to $50 million in size in exchange for significant minority of majority stakes in businesses with an enterprise value of up to $300 million.

At the outset, Swicorp raised capital for its private equity funds primarily from investors in the Middle East, but it has widened its investor base since then to include development finance institutions such as The IFC, the European Investment Bank and Proparco who are keen to support economic development in the region following the ‘Arab Spring’.

Subject to regulatory approval, Swicorp will retain a 49% stake in SPE Capital and remain a major sponsor for the firm.

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