UBS Global Assets Management, MerchantBridge join forces to invest in Middle East

The joint venture partners have put in $40m each and target $500m in investments. The target investor pool will be local and international investors seeking exposure to private equity opportunities in the region, with a combination of both existing clients and new clients.

The fund is expected to close by the end of 2009.

Initially, MerchantBridge-UBS Private Equity plans to primarily make direct investments in sectors including oil and gas services, financial services and light and medium industries.

Basil Al Rahim, founder and managing partner of MerchantBridge and newly appointed CEO of MerchantBridge-UBS Private Equity, said, 'The Middle East region is experiencing tremendous expansion supported by sound macroeconomic fundamentals. This expansion is offering important opportunities to invest in private businesses across the region.'

John Fraser, chairman and CEO of UBS Global Asset Management and chairman of UBS Saudi Arabia, added, 'The recent success of our infrastructure business has provided a great platform for us to expand our alternative offering into private equity. The success of UBS's existing relationship with MerchantBridge in the Middle East meant they were our ideal choice when we decided to expand into this asset class in the region.

'The new joint venture combines our global resources and direct investment experience with MerchantBridge's local knowledge and private equity track record. It cements what will be a long and successful partnership and supports the growing demand from global investors for private equity investments, particularly in the Middle East region,' he continued.

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