Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Abraaj fuels growth markets with credit



Foreign banks that have retrenched since the financial crisis are still averse to risk in the growth markets of Latin America, sub-Saharan Africa and South Asia. Local banks focus on short-term working capital.

That has created a “large dislocation and a funding gap,” for growth-stage companies in such markets, according to Christopher Wilder, a managing director at Abraaj, the $10 billion private equity firm based in Dubai. As a result, Abraaj will use debt-financing to fuel growth in companies in logistics, healthcare and education, to help prepare them for investments from Abraaj’s private equity team. Abraaj’s “growth credit” aims to “provide solutions across the capital structure,” he says.

Abraaj’s focus on larger companies means financing gaps will remain for smaller businesses in emerging markets, as detailed in ImpactAlpha’s Fellow Travelers series last month.

But it starts to fill an important gap for larger companies aligned with the U.N. Sustainable Development Goals, which Arif Naqvi, Abraaj’s founder, says are a “phenomenal investment opportunity.”

You might also like...