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Laxman Pai, Opalesque Asia:

Private capital AUM in the region has been stable for the past decade - as of March 2020, AUM stands at $24bn, slightly lower than the $29bn recorded as of December 2011, said a study.

However, the fall is down to a decrease in the amount of dry powder from $8.3bn to $6bn, showing that fund managers are finding attractive opportunities to deploy capital, revealed a report by Preqin.

Recent quarters have seen a spate of dealmaking. 2019 saw record regional aggregate deal values across the buyout, real estate, and infrastructure sectors, it said.

GP estimates of investor appetite are optimistic, and large funds keep coming into the market - the 10 largest funds currently in the market are seeking a combined $5.6bn.

Rakiza Infrastructure Fund is the largest fund in the region, seeking $1bn.

Activity is sustained on a large number of investors in the region, only the largest 10 investors in the region have a combined AUM of $3.71tn, and overall the Middle East is poised for capital growth.

"Economies in the Middle East are at a crossroads. The decline in oil prices and the COVID-19 outbreak increased the need for structural economic reform. Initiatives are underway to boost domestic employment, and the Middle East's growing private capital industry can play a valuable role," the report noted.

Dave Lowery, Head of Research Insights at Preqin said: "Private capital will play an important role as the Middle East's economies restr......................

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