The Abraaj Group: Making of a Global Private Equity Firm

The Abraaj Group: Making of a Global Private Equity Firm

By
William F. Meehan, Ali Gara
2015|Case No.F312| Length 20 pgs.

The case looks at how The Abraaj Group has emerged as a global private equity firm and came to define its focus and strategy in this process. While the local knowledge and relationships is considered to be critical for value creation in the private equity industry, firms often seek to expand geographically as their funds and resources increase. The case explores how a global firm like Abraaj can balance the need to focus on local networks and knowledge with a global stretch. It tries to answer this question by focusing on how Abraaj creates value, how the firm differentiates itself from local and global competitors, and how local-global dynamics manifests itself through the different phases of the firm’s business.

Learning Objective
The case aims to serve as a basis for broader discussion on how private equity firms choose to define their focus and strategy. The case focuses on The Abraaj Group to gain insights on the following questions: Why does it make sense for a private equity firm to have a global focus if value creation is primarily local in the private equity industry? What are the challenges and advantages of having a global focus for a private equity firm? How can a global private equity firm balance the need to focus on local networks and knowledge with a global stretch? Can having a global platform provide a competitive edge for a private equity firm in comparison to local competitors? How can local-global dynamics manifest itself through the different phases of deal making in a global PE firm?
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