Mergers, Acquisitions and Financial Results

Delta Capital has launched a US$75 million regional telecoms fund, to allow investors to take advantage of the strong growth in the industry.

The Delta Capital Middle East and North Africa Telecom Fund, from the subsidiary of telecom advisory firm Delta Partners, is intended to provide investors with access to two growth opportunities in the MENA telecommunications industry.

The main focus is on the growth expected within the emerging class of niche players along the telecom value chain, which provide services to the telecom operators. The second focus will be on participation in specific license classes throughout the region.

The fund will target an annual rate of return of 25%, focusing on taking minority or majority stakes anywhere between $3 million and $15 million per investment, according to Morten Kvammen, head of private equity at Delta Capital. Although it will target investments in the entire MENA region, specific focus will be on the UAE, Bahrain, Jordan, Kuwait, Saudi Arabia and Egypt.

“At Delta Capital, we are nurturing the growth potential of the telecom industry in this region. Our specific industry and investment expertise and close ties with Delta Partners puts us in pole position to capitalise on business opportunities related to the liberalisation process, new business models and technologies.” explains Kvammen.

“In addition, this fund will provide investors the ability to participate in pre-IPO value gains in an industry where they have had previous access only through public markets “ 2006 saw the Middle Eastern telco industry grow by around US$46 billion, and growth for the region is expected to double in the next three years.