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Chart of the Week: Middle East allocating more to private equity

More than a third of LPs invest greater than 15 percent in private equity

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Private Equity International profile 44 Middle Eastern LPs that have a current allocation to private equity. 34 percent of such LPs have an allocation in excess of 15 percent of its total assets under management (AUM) to private equity. 75 percent of the largest private equity allocators are asset managers including Starling Group, GlenRock Israel and Yozma Group which allocate all of its capital to private equity.

The data reveals that 43 percent of Middle Eastern LPs are located in Kuwait, with an average allocation of 16 percent to private equity. Univest Group, Sorooh Investment Company and Muthanna Investment Company are some of the investment firms that have larger allocations investing 62 percent, 40 percent and 30 percent respectively.

Leumi Partners, an Israel-based investment firm, told PEI that it invests 20 percent of its AUM into 25 private equity funds committing recently to Viola PE Fund II and Apax VIII. Going forward Leumi Partners will seek to invest in buyout and venture capital funds in the United States, Europe and Israel.

These results suggest that Middle Eastern LPs are allocating more of its investments to private equity.