Investment dollars are still available for the utilities sector, despite the tightening of the debt markets.
Manara Equity Partners (MEP) is using its US $500 million investment fund to target infrastructure companies and is still on the look out for investment opportunities. Through the Manara Infrastructure Fund the company is looking to take minority equity stakes in infrastructure companies, within what it calls ‘top-tier Islamic countries’.
“What we would like in power and water, is to invest in what we call regional platform companies,” said Saadia Khairi, senior partner and chief investment officer for MEP. “We prefer not to invest in a single project, or a single asset, what we’d like is a portfolio of projects. So, if companies such as Marubeni, Veolia or Suez were interested in raising capital by selling a stake in a company that holds assets within this region, that would be of particular interest.”
The fund is looking primarily at the Gulf, Egypt, Turkey, Malaysia, Indonesia and Pakistan. Its definition of infrastructure is broad and includes transport, basic industries and social infrastructure, as well as power and water projects.
Khairi believes now is a good time for the fund to invest as asset prices are falling.
“I think anyone who has liquidity is very popular,” she said. “A year ago it was no big deal, unless you had assets to sell. Now it’s a big deal if you have cash. As long as the ticket price is within reach, I think it’s a really good time to be investing.”
MEP signed a deal with Wartsila’s power plant division, last year, and has also invested in an airline.
