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Kamar Jaffer
Funds & Asset Management Lawyer - Structuring and closing funds to raise capital and make investments - Emerging Markets - Legal 500 Rising Star
Kamar Jaffer is a Partner in the Funds & Asset Management Group at A&O Shearman (formerly Allen & Overy) based in Dubai, United Arab Emirates.2 She specializes in advising sponsors, managers, sovereign wealth funds (SWFs), institutional investors, and family offices on structuring and establishing investment funds, including Shari'a compliant funds, co-investments, and cross-border M&A.13
With over 15 years of experience, Jaffer's expertise spans various sectors including private equity, debt, technology, infrastructure, real estate, venture capital, hospitality, and healthcare.12 She is known for her deep specialization in fund structuring and significant experience in Shari'a-compliant investment fund matters.1
Prior to joining A&O Shearman, Jaffer was the Head of Legal for the Middle East and North Africa (including Turkey) at PineBridge Investments Middle East, a global multi-asset class manager.12 This in-house experience has provided her with unique insights into the inner workings of asset management firms.2
Jaffer has been recognized in the industry, including being named "Up and Coming" in Middle East Investment Funds by Chambers in 2021 and 2022, and a "Rising Star" in Investment Fund Formation and Management in the United Arab Emirates by Legal 500 in 2022.1
She is also a member of A&O's Diversity, Equity & Inclusion Committee and the Young Arab Leaders organization, demonstrating her commitment to promoting gender diversity and youth empowerment in the Middle East.2
Highlights
SWFs continue to develop strategic partnerships to deploy in private credit, in this case with focus on Asia deals
#privatecredit #middleeast #swfs #asia #strategicpartnership
What are Middle East SWFs investing into?
Flush with cash and increasingly sophisticated, Middle East-based sovereign wealth funds (SWFs) are investing across a broader range of assets and markets than ever before.
They are amongst the most active and sophisticated investors in the world. Couple of figures:
- AuM of Middle East SWFs continue to grow, hitting an all-time high of over $3.7tn as of March 2023 (Preqin).
- Of the top 10 most active SWFs in 2022, 5 were from the GCC, while the region’s funds were responsible for almost half (43%) of the year’s 60 SWF mega deals ($1.0 bn+) (Global SWF 2023 Annual Report).
However, trying to identify consistent themes in their deployment of capital can be difficult because unlike many private investors, their unique strategies are diverse and focused on more than pure financial returns. Middle East SWFs have domestic and geopolitical objectives and take a long-term view on where they put their money as they strive to diversify their national economies away from natural resources.
Against this background, the apetite for alternatives has increased. Preqin analysis shows that average allocations by Middle East SWFs to alternatives has doubled from 21% in 2021 to over 44% in 2022 of total assets. Where is this going to?
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Private equity continues to be a popular asset class, although allocations have slightly decreased due to increased significant weighting of private equity in their portfolios. Buyout funds are dominant private equity strategy, followed by growth funds.
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Certain Middle East SWFs are taking a more active approach to direct investments and co-investments, whilst others have preferred a partnership approach. Today, Middle Eastern SWFs co-invest alongside other financial sponsors and are more active stewards of their portfolio companies. Read attached article on EU Foreign Subsidies Regulations that introduces a new notification regime for certain transactions.
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We're seeing a greater interest in private debt in light of search for steady income stream (in particular, direct lending).
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Middle East SWFs are stepping into the space left in venture capital as other players retreated.
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On the real estate side, Middle East SWFs have historically had a preference for US real estate; however, we're now seeing them make direct investments in real estate assets such as logistics and data centres.
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Infrastructure products (incl. infra debt), especially in assets which align with sustainability goals and energy transition (e.g. renewable energy, green hydrogen, power generation, water supply and digital connectivity).
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GP stakes are also attracting interest given current sluggish market environment, delays in exiting portfolio investments and anticipated growth in private markets. Middle East SWFs provide exposure to stable fees and carried interest flow and enhance strategic relationships with managers.
#allenovery #middleeast #SWF #alternatives #opportunities #liquidity
