CVC seeks first Mideast deal

LONDON: CVC Capital Partners is considering its first investment in the Middle East as Europe’s largest private equity company works to expand its business into new geographies, according to people familiar with the matter.

The London-based buyout firm has considered potential targets including United Arab Emirates-based shisha maker Al Fakher Tobacco Trading as well as education companies, the people said, asking not to be identified as the information is not public.

CVC was also one of the companies considering a bid for a stake in property developer Emaar Properties PJSC’s entertainment division, people familiar with the matter said previously.

CVC was in advanced talks with Al Fakher though discussions faltered, the people said. The buyout firm is also studying other potential transactions in the region, accord- ing to the people.

No final agreements have been reached, and CVC may decide against pursuing investments in the firms, they said. A spokesman for CVC declined to comment. Al Fakher didn’t immediately respond to requests.

CVC’s push into the region is being led by Istvan Szoke, its London-based partner responsible for the firm’s emerging markets investments in Europe, the people said. Ozgur Onder, a managing director, is also involved in identifying opportunities, they said.

The buyout firm has been looking at opportunities to make full or partial investments in the Middle East for some time and is attracted by the region’s young-and-growing population, one of the people said.

A sharp drop in oil prices in the last few years and its impact on local economies had also pushed some businesses to look for investors, the person said.