Citi has been appointed to provide private equity services to Delta Partners, a management advisory and investment firm specialising in telecoms, media and technology (TMT) in emerging markets.
Citi is providing fund administration services for the Delta Partners Emerging Markets Technology, Media and Telecoms Growth Fund II.
The fund, targeting aggregate commitments of USD350m, has secured a USD100m first-close by gaining commitments from the IFC (World Bank Group), NTT DOCOMO and a number of wealthy family offices in Europe and the Middle East.
Delta began fundraising last year for its fund which focuses on growth capital and selected buyout investment opportunities in companies operating in the TMT sector in Africa, Central & Eastern Europe, the Middle East, and South-East Asia.
Geoffrey D Fink, managing partner and head of investments at Delta Partners Capital, says: "Our appointment of Citi as a third party administrator will help us to provide transparency for our investors while keeping administrative costs low. We look forward to partnering with them as we seize the excellent investment opportunities in the high-growth TMT sector across emerging markets."
"Delta’s successful first close of its fund shows how savvy private equity fund managers can raise funds despite the challenging fundraising environment," says Kamran Anwar (pictured), EMEA head of private equity services at Citi. "As capital becomes scarcer in Western markets, private equity firms are increasingly sourcing investors from the Gulf and other growth regions. Citi’s own research estimates that there is USD6trn of assets controlled by the world’s wealthiest families, USD5trn of which will change generational hands in the coming ten years. The Middle East echoes this trend – it has a long-standing entrepreneurial tradition and managers with compelling investment ideas and track records will continue to succeed."
The mandate follows several mandates secured by Citi’s Private Equity Fund Services business in the last year, including its appointment by Abraaj Capital to provide fund administration services for its GBP650m Small and Medium Enterprises (SME) fund, Riyada Enterprise Development. The bank has also recently published a white paper identifying significant opportunities for private equity fund managers seeking to raise funds from the Middle East.
