Latest news with #LauraGardnerCuesta
Bloomberg
07-07-2025
- Business
- Bloomberg
A Funding Paradox in the Land of Trillion-Dollar Wealth Funds
Welcome to the Mideast Money newsletter, where we chronicle the intersection of money and power in a region that's become one of the most influential in global finance. I'm Laura Gardner Cuesta, Bloomberg News' Middle East equity capital markets reporter, filling in for Adveith Nair. This week: Private-markets firms managing over $700 billion expand in the UAE, the contradiction at the heart of Abu Dhabi's office market, and BlackRock may sell its stake in Aramco's gas pipelines. But first, the region's trillion-dollar capital pools are masking a venture capital paradox.
Bloomberg
07-07-2025
- Business
- Bloomberg
Decoding the Middle East's Late-Stage Venture Capital Gap
Live on Bloomberg TV CC-Transcript 00:00Despite a strong first quarter for start up funding, the Middle East venture ecosystem faces a unique paradox. The region's sovereign wealth funds and family offices wield trillions of dollars, but startups are struggling to access the funding they need to scale. Laura Gardner Cuesta is Bloomberg's Middle-East Equity Capital Markets reporter and joins us now. Laura, I've got to say this is, I would say a surprising observation because we always talk about the region being awash with capital from the likes of these sovereign wealth funds, these family offices. So why is it the case that for some of these start ups, it's difficult to get late stage funding? Yeah, absolutely. It's something that you wouldn't initially think about. But we interviewed a few VC funds and companies based in the region and they noted that they're seeing there's a funding gap at the late stage, so Series B onwards and there's a few reasons they cited. One of them is that, yes, there is a lot of capital in the region, but there's also a lot of demand for this capital. So we've seen sovereign wealth funds invest in regional allocators, but it's still comparatively small compared to other global investments. There's also been a pullback of international funders in recent years. So there was a peak in 2021, 2022, but this has since pulled back a bit and they're more focused on things like Tech I and a lot of this is in the US, so this means that there's less going around for Middle Eastern companies. And finally, there's also a lack of exit option options, rather exit track records, because, yes, we've seen a wave of IPOs in the region, but a lot of this has been from me, the state backed companies or we've also seen a lot of longstanding family run businesses. We're yet to see a wave of startup IPOs, if that makes sense. So that also gives investors a bit of concern about where the money's going to get stuck. So you think it's a fair combination of things. So yeah, that that is interesting. Obviously, assets are trickling down across the whole landscape, but what would you say the risks are for the Middle East venture capital ecosystem if that funding gap is specifically at the Series B stage and beyond is not addressed. So I mean, I think and again, speaking to two companies, it doesn't mean that I'm not accessing the series B funding means that you won't be able to IPO in the Middle East. But we spoke to property, find a CEO, and he said one of the concerns he's had is that it might not essentially companies that are in the in getting ready for an IPO, getting ready for an exit if they don't have this access locally, it could just stunt this growth and development. So I think there is a risk there. In general, we are seeing signs of change. There's recently been an announcement by BECO Capital that invested in and that's known for series funding. They've started a new fund for later stage capital. We're seeing some new players come into the into the market. So Riyad Capital recently announced they led around for quick commerce firm Ninja in Saudi. So we're seeing this change. We're seeing some some funds being announced, but it's still, you know, it's going to take some time. So I think ultimately what it means for the companies, look, if we really want to see a wave of startup IPOs in the Middle East over the next two, three, four years, we're going to have to well, it will be more helpful if you have this capital locally.
Yahoo
09-06-2025
- Business
- Yahoo
Saudi Arabia's IPO Boom Faces Multiple Challenges
Saudi Arabian firms have raised about $3 billion from new share sales this year, making it one of the world's hottest IPO markets. But a series of recent setbacks is threatening to take the sheen off that boom, Bloomberg's Laura Gardner Cuesta reports on Horizons Middle East & Africa.
Bloomberg
09-06-2025
- Business
- Bloomberg
Saudi Arabia's IPO Boom Faces Multiple Challenges
June 9th, 2025, 6:42 AM GMT+0000 Saudi Arabian firms have raised about $3 billion from new share sales this year, making it one of the world's hottest IPO markets. But a series of recent setbacks is threatening to take the sheen off that boom, Bloomberg's Laura Gardner Cuesta reports on Horizons Middle East & Africa. (Source: Bloomberg)
Yahoo
28-03-2025
- Business
- Yahoo
Abu Dhabi's Second-Biggest Bank Said to Weigh Selling Bad Loans
(Bloomberg) -- Abu Dhabi Commercial Bank PJSC is considering potentially offloading more bad debt, people familiar with the matter said, as Middle East lenders look to further clean up their balance sheets. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Gold-Rush Fever Returns to Historic New Zealand Mining Town Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes Abu Dhabi's second-largest lender could look to sell a package of non-performing loans as soon as the end of 2025, the people said, declining to be identified as the information is private. The bank is in the early stages of studying such a deal, the people said. ADCB first sold distressed debt in 2023, twin deals that were seen as landmarks for the region. It offloaded a $1.1 billion loan book to US hedge fund Davidson Kempner Capital Management LP, as well as $357 million of debt to a recovery fund led by professional services firm Grant Thornton. The bank hasn't made final decisions on the timing or size of the latest sale, though people familiar with the matter said it could be similar in magnitude to the Grant Thornton deal. A spokesperson for ADCB declined to comment. Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region. The lender recently received an upgrade from S&P Global Ratings, which said 'strategic balance-sheet derisking over the past four years has strengthened its resilience to economic cycles and unexpected stresses.' Banks often sell off problem loans to free up resources and shore up their balance sheets. Such deals are gaining prominence in the Middle East. Deutsche Bank AG acquired a portfolio of soured loans worth around $800 million from the United Arab Emirates's largest lender, First Abu Dhabi Bank PJSC, at the start of the year. Further afield, several lenders in Saudi Arabia have also been considering similar deals, Bloomberg News has reported. Saudi National Bank is expected to complete a transaction by the end of the year, people familiar with matter said earlier this month. --With assistance from Laura Gardner Cuesta. Business Schools Are Back Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? ©2025 Bloomberg L.P. Sign in to access your portfolio
