The Secret to Fundraising in the GCC – Do’s and Don’ts | Alex Gemici

TL;DR

A comprehensive analysis of raising money in the Middle East and the differences between investors in the region and the West.

Transcript

thank you for coming over it was really fun following all the tech and VC guys they're all wearing jeans and we're the last vestige in the Middle East here bankers wearing suits even bankers Goldman Sachs in New York that have gone casual so I'm gonna talk a little bit about how to raise money in the Middle East and then the differences between inv... Read More

Key Insights

• 🐬 The Middle East offers substantial untapped capital and LP diversification opportunities.
• 🚱 Non-institutional investors and Sharia-compliant investors are undercovered by fund managers.
• ❓ Regulatory requirements for licensing and registration have become stricter.
• ❓ GCC investors require more due diligence and prefer following local institutional investors.
• 🤑 Raising money in the Middle East requires local knowledge and relationships but offers access to capital for foreign alternative investments.
• ❓ The structuring of Sharia-compliant funds has become more accessible and appealing to investors.
• 🪘 Visas and religious belief restrictions are no longer significant barriers.

Questions & Answers

Q: What are the advantages of raising money in the Middle East?

Raising money in the Middle East provides access to untapped capital, LP diversification, and potential for larger ticket sizes.

Q: Which investors are often overlooked in the Middle East?

Non-institutional investors and Sharia-compliant investors are often undercovered by fund managers in the Middle East.

Q: What are the challenges of raising money in the Middle East?

Regulatory requirements have become stricter, with licensing and registration becoming a significant issue for fund managers. Due diligence also poses a challenge for GCC investors.

Q: Why should fund managers consider raising money in the Middle East?

Despite challenges, raising money in the Middle East offers access to a large pool of capital, sticky investors, and attractive ticket sizes.

Summary & Key Takeaways

• Raising money in the Middle East has its advantages, including untapped capital, LP diversification, and potential for higher ticket sizes.

• Most fund managers focus on the top sovereign wealth funds in the Middle East, but there is significant capital undercovered in the non-institutional investor space.

• Regulatory requirements have become stricter in the Middle East, with licensing and registration becoming essential for fund managers.