Companies and their owners are trying to make sense of what to do next amid the most challenging economic environment since the 1930s. While the global financial crisis had a direct impact on the economies of the Middle East -all sectors confounded- the GCC markets in particular have faired relatively well, chiefly due to stable/rising oil prices, no toxic assets inthe banking sector, and the respective stimulus packages extended by governments.

During market turmoil, new business opportunities emerge, and for mid-market buyout firms like GrowthGate the potential is significant: bold, strategic thinking today can reap sizeable rewards in the near to mid-term future. A dual opportunity track is foreseen: a retrenchment of foreign corporations due to the global crisis while smaller participants still linger in fragmented sectors. Mid-sized businesses, offer real opportunities for consolidation, innovation and value creation to be led by growth-oriented PE investors.

The market opportunity lies today more than ever, in acquiring mid-sized, healthy businesses that offer valuable services or products to a growing number of domestic and regional customers. GrowthGate continues to identify profitable, solid enterprises that are asset-light, with no excessive leverage and strong cash flow streams, and with the potential for regional scalability at minimum regulatory costs. We believe these businesses will represent the biggest opportunities for PE investments in years to come.

Enterprises that miss the window of opportunity to become larger platforms backed by growth-orientated PE investors could be foregoing significant potential, and may ultimately fall behind those that have partnered with active PE investors who can assist in exploiting the benefits offered by current market conditions and accelerating their growth prospects..