Private Equity
Business Services

Unlock growth potential in asset-light service sectors in the US and MENA with a key focus in healthcare, logistics, information technology and value-add resellers.

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Overview

We have been investing in the business services sector since 2003 and have overseen investments valued in excess of $560 million in transaction value.

An increasing number of businesses are outsourcing their non-core and support activities to achieve a leaner and more cost-efficient operating structure. This trend has expanded from outsourcing basic activities such as cleaning and landscaping to more value-added services such as employee recruitment, brand management, sales and marketing, and healthcare-related services. Given the current economic climate, more firms are likely to outsource larger portions of their activities to reduce costs and this should accelerate growth.

Within the business services sector, we target companies that are asset light, technology-enabled, and deliver essential services on a broad geographic scale. The non-discretionary nature of such companies’ services helps provide resilience against unforeseen economic downturns, and its asset light, tech-enabled features provide management with operating leverage and the ability to adjust their cost base more rapidly to their operating environment. Furthermore, we target companies in sectors that are highly fragmented and lend themselves well to a roll-up strategy. Platforms that have national scale typically trade at a premium to regional or local operators, allowing bolt-on acquisitions to be completed at relatively attractive multiples.

NEWS

Arcapita announced the launch of the Fintech Portfolio platform, which has invested in minority stakes across a diversified portfolio of high-growth fintech companies.

Video

Yousif Al Abdulla, Head of MENA Investment - Arcapita launches Fintech Platform.

INDUSTRY INSIGHTS

Insights from alternative investments experts in the private equity and real estate industry.

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Summer 2021 – Revival of the travel industries

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