Dubai’s Al Masah Capital plans to invest as much as US$200 million this year across health care, education and food and beverage. At the same time it is seeking to invest in Kuwait, Singapore and Malaysia.
Currently Al Masah manages about $650m in assets.
“We intend to raise another $300m to $350m this year,” said Shailesh Dash, the chief executive of Al Masah, which he founded four years ago. “The confidence is back in capital markets and therefore also for the private equity segment.”
Al Masah, which is backed by shareholders from the region and outside, will also create its maiden real estate fund, which would invest in commercial property, by the end of May.
The fund size would range between $150m and $200m. Almost $40m has already been committed.
The company is currently invested in 18 healthcare businesses, 19 in the education sector and nine in food and beverage.
“Our first exit would not be before 2018, hopefully through an IPO,” Mr Dash said.
Despite the bull run on UAE markets, liquidity would need to improve for the company to consider a local listing.
“Sentiments have improved, now we need to see how the Government is able to reach out to capital markets and bring liquidity to the markets,” he said.
Al Masah wants to take its portfolio to 26 healthcare companies across the UAE, Qatar, Oman, Kuwait and Singapore by the end of the year. In the UAE, it is in talks to acquire a group of clinics. Its healthcare portfolio comprises diagnostic centres, laboratories and a 30-bed hospital.
“Yes, we are bullish but we need to see the effects after actual implementation of [Dubai’s mandatory health insurance] law,” Mr Dash said.
It is also looking to acquire two large schools in the UAE with a transaction amount in the range of Dh100m to Dh200m each, besides setting up schools and nurseries in Oman and Qatar, and buying several kindergartens in Malaysia. It currently owns Star International School.
Dubai’s private schools sector has been booming. The schools earned Dh4.7 billion from tuition fees in the 2013-14 academic year, up from Dh4.1bn the previous year, according to the Dubai Private Education Landscape report released last week.
The student population also soared 8.3 per cent to touch 243,715 students.
While it would not enter the hotels sector, the company expects an influx of funding for hotel projects in the UAE.
“There will be huge investment in hospitality running into billions of dollars,” Mr Dash said. “All major brands are here except Dorchester and MandarinOriental.”
The value of investments in the UAE travel and tourism sector is set to rise by 9.7 per cent this year to Dh23 billion, according to a World Travel and Tourism Council report.
Within hospitality, Al Masah will remain focused on the food and beverage sector, which it aims to grow to have 19 units.
Mr Dash also expects new private equity players to come into the local market in the next 18 months.
Abraaj Capital, Gulf Capital and Ithmar Capital are some of the other players in the UAE market.
The region’s largest private equity investor, Abraaj Capital, manages $7.5bn in 50 countries in sectors such as manufacturing, education, retail, aviation, oil and gas, healthcare and agribusiness.
Ithmar Capital, which manages $800m in investments in portfolio companies such as Al Noor Medical and Dewan Architects and Engineers, among others, plans to spend as much as $270m this year in the healthcare and education sectors.
ssahoo@thenational.ae
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