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Aliph Capital, a GCC-focused private equity fund management firm, recently acquired from Abu Dhabi Holding Company ADQCompleted the first investment transaction in The Pet Shop, the largest pet company in the UAE.
The deal, part of Aliph Capital’s $250 million debut fund, Aliph Fund I (LP), includes the acquisition of TPS’ DubaiPetFood.com and Petsville business lines, Aliph Capital said on Thursday.
‘Substantial’ growth capital to be used to help TPS expand in UAE and enter and address fragmented markets Saudi Arabia and Qatar.
Terms of the agreement were not disclosed. Petsville founder Amr Hazem will become CEO of TPS.
In October, Aliph Capital founder and CEO Huda Al Lawati told the whole country it plan to complete the first transaction Before the end of 2022.
Aliph Capital’s investment strategy includes backing mid-sized GCC companies and driving their digital transformation initiatives.
The company aims to make two to three investments per year, Ms Al Lawati told the whole country.
Farah Al Mazrui, head of investments at Aliph Capital, said Aliph Capital’s debut investment is “a perfect example of our strategy of aggressively investing in mid-market growth companies”.
“The Pet Shop is a recognized leader in a mature market for consolidation, growth and further technology support, and we look forward to assisting the company in its ambitious expansion plans.”
Private capital deals in the Middle East and North Africa rose from 76 in the second half of 2019 before the coronavirus pandemic to 214 in the first half of 2022, driven by increased technology support and digital platforms. 2022 Mena Data Insight Report from the Global Private Capital Institute.
Investments in the region surged from $570 million to about $19.5 billion, the GPCA said, with Blackstone acquiring UAE-based technology and visa outsourcing services firm VFS Global, the largest private equity firm in the region, for $1.1 billion in May 2022. Transactions take place in the technology sector.
The UAE pet care market, the largest in the GCC, is worth $361 million by 2020 and is expected to grow strongly at a compound annual growth rate of 9% to 11%, according to Aliph Capital.
Aliph Capital’s first investment is “a perfect example of our strategy of aggressively deploying mid-market growth stars”
Farah Al Mazrui, Head of Investments, Aliph Capital
It said the industry’s growth would be underpinned by a young population, growing expat community and rising pet ownership in the future.
A behavioral shift in consumers waiting longer to start a family will also drive growth.
The pet market in the wider GCC remains largely unpenetrated and highly fragmented, presenting opportunities for investment and consolidation, according to Aliph Capital.
“I see significant growth potential in this business and look forward to working closely with Aliph Capital to realize this goal,” said Mr. Hazem.
Established in 2011, TPS was acquired from Kasamar Holdings, a single family office investing in regional private equity, global real estate and public securities.
Mo Bissiso, director of Kasamar Holdings, said: “We believe the industry has great potential for continued growth and are pleased to pass the baton to Aliph to continue expanding in the region.”
Updated: November 17, 2022 at 10:09 AM
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