JEDDAH, Saudi Arabia — Sidra Capital, the Saudi based alternative asset manager, partners with BlackRock Alternatives to announce the first close of the Sidra-BlackRock Asia-Pacific Private Equity Strategy. The bespoke strategy looks to provide investors with unique Shari’ah compliant private equity opportunities in the Asia-Pacific (APAC) region.
The strategy leverages BlackRock’s established GP network and strong deal flow to access leading managers with compelling transactions. The strategy is structured to provide investors with a diversified exposure to the APAC region. APAC comprises of countries located in the East, South, and Southeast Asia as well as Australia and Oceania.
“This new mandate takes a strategic approach to a region that is rich with investment opportunities,” said Hani Baothman, Chairman of Sidra Capital. “Partnering BlackRock’s strong fiduciary heritage and expertise in the region with Sidra’s successful track record in Shari’ah compliant investments worldwide, will offer investors a truly unique investment opportunity in the APAC region.”
Lynn Baranski, Global Head of Investments for BlackRock Private Equity Partners said: “Private markets in Asia are gradually becoming an integral part of private portfolios for clients across the globe on the back of robust economic and investment development. We see ample investment opportunities to deliver attractive risk-adjusted returns in the region for experienced managers with on-the-ground presence and proven track records across cycles.”
Private equity earned a combined IRR of 27% in 2021 and remained the highest-performing private markets asset class, with manager selection and sub-asset class allocation reported as having a significant bearing on overall portfolio performance. APAC private equity has consistently outperformed its public market peers in the past 5-, 10-, and 20-year periods. APAC PE deal activity was up 50% to USD 296 billion in 2021 with China and India contributing the most to the deal volume (43% and 21%, respectively), followed by South Korea.
The APAC region is particularly attractive as its expanding middle class is experiencing an increased demand for consumer goods, utilities, TMT, healthcare and education. Investment opportunities range from developed Asia to emerging economies where there is a new wave of activity. In addition, there is strong potential in under-penetrated private markets.