Private Equity

Driven by the government’s commitment to economic liberalisation, Pakistan is forecast to continue growing at around 7% per annum, exceeding the Asian average. With one of the world’s most successful privatisation programmes, a pivotal geographic position in a fast-growing region and sustainable comparative cost advantages in key sectors, Pakistan offers many exciting investment opportunities to sophisticated private equity investors.

JS Group has a successful, long term track record of unearthing and successfully developing investment opportunities in Pakistan and has led several successful private equity investments. In 2006, JS Group launched JS Private Equity Fund I; Pakistan’s first private equity fund targeting high-quality expansion capital and buyout investment opportunities within sector-leading companies in Pakistan.

The Fund – JSPE Fund I

  • Pakistan’s first private equity fund, focusing on expansion capital and buyout opportunities
  • Tax efficient, structured as a Mauritian Limited Life Company
  • Target size US$200 million, US$70 million first close completed
  • First close investors include International Finance Corporation, SAMBA Financial Group, Global Investment House and DCD Group
  • Sponsored by JS Group, investing US$20 million, with US$1 million from the Fund Partners
  • Target returns 30-40% net of fees and expenses

JS Group – The Fund Sponsor

  • One of Pakistan’s leading financial services groups
    • AA+ PACRA rated flagship investment company
    • Largest private sector asset management company
    • Best-capitalised, award winning equity brokerage business
    • Largest fixed income and currency brokerage businesses
    • Second largest shareholder in largest general and life insurer
    • Conventional and separate Islamic banking businesses
  • A history of successful international partnerships
    • Allianz (insurance)
    • International Finance Corporation (asset management)
    • Experian (credit bureau)
    • Bear Stearns (investment banking)
  • Pakistan’s largest and most successful private equity investor
    • 24 private equity investments over a 10+ year horizon
    • A partner team that has worked together for over 10 years and has a depth of experience across the private equity life cycle
    • A delivered US$ 10-year IRR of 55% on Pakistan private equity

Key reasons to invest in Pakistan

  • Strong macroeconomic performance – 8.4% GDP growth in 2004/05, 6.6% in 2005/06 and 6-8% medium-term growth forecast by Asian Development and World Banks
  • Improved credit position (S&P upgrade to B+, Moody’s upgrade to B2) with positive outlook
  • Liberalisation, deregulation and privatisation in key economic sectors
  • Pakistan’s strategically geographic position as a trading and energy bridge for Asia and the Middle East
  • Comparative cost advantage and reduction in trade barriers
  • Limited private equity competition due to local regulatory framework
  • A well developed legal, reporting and corporate governance framework

Investment Strategy

  • Control or significant minority stakes with strong contractual rights
  • Established companies, privately held or PIPE investments
  • An attractive pipeline of investments already in place
  • Expansion capital: comparative cost advantage, pent up domestic demand, deregulating sectors
  • Buyout capital: sector consolidations, family owned companies facing succession issues, privatised company spin offs, underperforming conglomerates
  • Greenfield: very selectively for infrastructure bottlenecks

For further information on JS Group’s private equity activities  and how to access investment opportunity in Pakistan please submit an enquiry through the Contact Us page.