LMA Fund Finance Insights – The history and evolution of fund finance in Middle East & Africa
21 February 2025The LMA is pleased to have published the second in its series of Fund Finance Insights papers. These are intended to enhance understanding of this growing asset class.
This second Fund Finance Insights paper builds on the previously published Insights exploring the history and evolution of fund finance in Europe. The latest Insights paper turns to the evolving fund finance market in Middle East and Africa.
The history of fund finance in these regions reflects unique economic, cultural and historical contexts and resource-driven growth. In the Middle East, the integration of traditional Islamic finance principles with modern fund finance products has created a unique and thriving market. In Africa, its dynamic economic landscape and growing private equity presence have fostered a vibrant fund finance sector. Both regions are poised to play an increasingly important role in the global fund finance landscape.
This Insights paper highlights the key milestones that have shaped the market and continue to shape the market in these regions. In particular, the paper covers:
- Early financial practices and how these shaped the market (including the role of sovereign wealth funds and development finance institutions)
- Emergence and development of fund finance facilities
- Increasing relevance of local fund managers and thematic funds in Africa
- Resilience and stability
- Future outlook
Thank you to authors: Mick Young, Executive Director & Assistant General Counsel, Fund Finance at JPMorganChase and Bhupinder Singh, Managing Director, Head of Leveraged & Acquisition Finance at First Abu Dhabi Bank, as well as to everyone who contributed to this paper.
Commenting on the release of the paper, Mick Young, said:
"Fund finance in the Middle East and Africa is unlocking new opportunities for growth while serving as a catalyst for economic diversification. It empowers businesses to access the capital they need to innovate and thrive in an ever-evolving global market."
Kam Hessling, Managing Director at the LMA said:
"With the growing role of the Middle East and Africa in the fund finance market, we are excited to be working with our EMEA membership to foster further innovation and growth.”
You can download the paper here.
As fund finance in the Middle East and Africa continues to evolve and grow, we invite the market to actively engage with the LMA to support the development of fund finance across EMEA. If you are interested in learning more about the LMA’s work to support efficiency, liquidity, transparency and sustainability in the market, please get in touch with Kam Hessling.