Saudi alternative asset manager Sidra Capital and BlackRock Alternatives have joined hands to hold the first close of the Sidra-BlackRock Asia-Pacific Private Equity Strategy, which will invest in Shariah-compliant private equity opportunities in the Asia-Pacific (APAC).
The programme seeks to “access leading managers with compelling transactions” across the region, Sidra said in a statement.
While details of the strategy were not disclosed, Sidra listed on its website a 2022-vintage, $101-million private equity fund called Sidra-BlackRock APAC PE Co-investment Opportunities.
“This new mandate takes a strategic approach to a region that is rich with investment opportunities,” said Sidra Capital chairman Hani Baothman. The firm is looking to tap opportunities in developed Asian markets to emerging economies and under-penetrated private markets.
“Private markets in Asia are gradually becoming an integral part of private portfolios for clients across the globe on the back of robust economic and investment development. We see ample investment opportunities to deliver attractive risk-adjusted returns in the region for experienced managers with on-the-ground presence and proven track records across cycles,” said BlackRock Private Equity Partners global head of investments Lynn Baranski.
Private equity earned a combined IRR of 27% in 2021 and remained the highest-performing private markets asset class, with manager selection and sub-asset class allocation reported as having a significant bearing on overall portfolio performance, according to the statement.
APAC private equity specifically has consistently outperformed its public market peers, and investment activity was up 50% to $296 billion in 2021, with China and India contributing the most to the deal volume (43% and 21%, respectively), followed by South Korea.
Sidra’s private equity strategy covers the entire spectrum of buyouts, growth capital, recapitalisations and venture capital.
BlackRock Alternatives is active in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions. The firm managed $313 billion in alternative investments and commitments on behalf of clients as of September 30, 2022. Its key markets in APAC include Hong Kong, Sydney, Shanghai, Singapore and Tokyo.