While private equity firms saw a reduction in the level of new funds raised in 2012, the investment sector has shown strong signs of recovery, with the overall pool of funding available to SMEs, technology and media companies attracted significant interest throughout the region last year.The 2012 Private Equity and Venture Capital in the Middle East Annual Report, issued by the MENA Private Equity Association and compiled in collaboration with KPMG and Zawya, found the total number of investments increased from 84 in 2011 to 91 in 2012, a year-on-year increase of 8.33 percent.While the overall total value of funds announced rose by $200m to $1.1bn last year, there was a decline in the value of new funding raised and added into the pool of financing available, down from $900m in 2011 to $400m in 2012.“The reduced level of fundraising... reflects the general lack of deal flow in the region as regional PE (private equity) players continue focusing on preserving and enhancing value from existing portfolios and preparing for successful exits,” the report said.
