Shirish Saraf

Shirish Saraf

Shirish Saraf
Born Mumbai, India
October 12, 1967 (1967-10-12) (age 48)
Nationality Indian
Occupation investor, banker and entrepreneur

Shirish Saraf (born October 12, 1967) is an Indian emerging markets investor, banker and entrepreneur,[1] from India,[1] specializing in cross-border opportunities and economic co-operation.[2] He is the founder and vice chairman of Samena Capital, an Indian Subcontinent, Asia, Middle East and North Africa-focused alternative investments group.

In June 2014 he led the acquisition of a significant stake in RAK Ceramics PSC, a company listed on the Abu Dhabi Securities Exchange and one of the world’s largest ceramics manufacturers with annual revenues of approximately US$1 billion.[3] In February 2014, Saraf closed another landmark deal, whereby India’s Mahindra Two Wheelers (part of the US$ 16.7 billion Mahindra Group) and Kinetic Engineering sold the equity stake in Mahindra Two Wheelers Limited to Samena Capital.[4]

Prior to founding Samena Capital, Saraf was co-founder and managing director of Abraaj Capital, amongst the world’s largest 50 private equtiy firms with US$6 billion assets under management.[5] During his tenure at Abraaj Capital he was involved in several landmark private equity and block purchase transactions such as the buyout of Aramex, Amwal Capital, ONIC, EFG Hermes, Arabtec, Egyptian Fertilizer Company and also in addition pioneered and managed the special situations funds.

Prior to Abraaj, his career spanned across ANZ Investment Bank, Taib Bank [6] and Oriel Investment Company. He has held various directorships, including at Aramex Holdings,[7] Memo Express, DCM-Hyundai (India) Limited,[7] Commercial Bank of Oman SAOG, EFG Hermes, Amwal Capital (Qatar), Abraaj Capital and BMA Capital Management.[7] He is currently the Vice Chairman of Samena Capital and RAK Ceramics PSC.[7] In September 2013, AsianInvestor listed Mr Saraf as one of Asia’s 25 most influential people in Private Equity.[8] An avid cricketer and tennis player, Saraf is known for his support for educational institutions such as his alma mater, London School of Economics and Political Science. Mr Saraf is actively involved with the ‘Little Dreams Foundation’, a not-for-profit initiative with Phil and Orianne Collins and is a Director on the Board.[9] He is also on the World Advisory Board of WorldView, a Commonwealth Broadcasting Association Project that aims to improve UK public understanding and awareness of the developing world via the mainstream broadcast and digital media.[10] He is also a part of the Chairman's Circle of the London School of Economics and Political Science.[11] Saraf is called the Silk Road Dealmaker by a recent article in the Raffles Conversation, which quotes him as saying,[12]

"We tend to be conservative. We don't tend to do leverage. We don't tend to do shorting or buying exotic derivatives. We do the simple thing. We buy into a good company and hold it for three to five years before selling it"

He said, "We are partners; we help companies grow their business in a different market - for example, if an Indian company wants to go into the Middle East.[12] An article by Asian Venture Capital Journal says, " Operating partners now form the backbone of most private equity firms, in a variety of different guises. Samena Capital's take on this concept recognizes the importance of relationships." [13]

Early life

Born in a Kashmiri Pandit family of India, Saraf did his initial schooling at Mayo College.[14] He then attended Charterhouse School in Surrey, England. Saraf graduated from the London School of Economics and Political Science in 1989, obtaining a bachelor's degree in Economics.

Professional life - initial years

Saraf started his career in 1991 in the capital markets group of the ANZ Investment Bank,[7] where he set up the first India-dedicated private equity fund focused on India. This allowed him to cut his teeth in Indian PE investing that was just beginning to evolve in the early nineties. In 1994, Saraf joined Bahrain’s Taib Bank and led the bank’s foray into India, realizing the favorable investment climate and growing significance of foreign banks in India.[15] Taib Bank became the first registered Gulf -based Foreign Institutional Investor (FII) to operate in India and was an early player in private equity activities in India.[16] As the head of Direct Equity Investment and Syndication, Saraf was instrumental in establishing Taib Capital Corporation (the bank’s India subsidiary) as well as launching the $50 million Everest India Fund.[7] In 1998, Saraf founded Oriel Investment Company, which emerged as one of the leading regional corporate finance firms in a short period of time.[7] While at Oriel Investment, Saraf became one of the largest founding shareholders of US-based E-Ink Corporation,[17] the world's leading developer and provider of electronic paper displays. Saraf acquired ANZ Bank in Oman in 1997 with a consortium led by H.E Doctor Mohamad bin Musa Al Yousef ( former Minister of Development of Oman), followed by an acquisition of the Commercial Bank of Oman six months later. In what was viewed as a highly profitable exit, Commercial Bank of Oman was bought by Bank Muscat (Bank Muscat subsequently took a stake in highly regarded global financer Rana Talwar’s Centurian Bank), thus initiating a long-standing relationship between Saraf and Talwar. Talwar was formerly the Group CEO of Standard Chartered Bank—the first Indian and Asian to hold this distinction.[4] During Saraf’s time at Abraaj Capital, Talwar formed a joint venture with Abraaj called Sabre Abraaj.[18] Again, in 2011, Talwar joined Samena Capital as a shareholder.[19] In 2002, Saraf joined Abraaj Capital, being set up by LSE alumni Arif Naqvi, as a co-founder. In 2006, Saraf took on the role of managing director for the firm.[20] Abraaj was widely seen as one of the pioneers of private equity in the Middle East region, and invested in the Middle Eastern, Africa and Asian countries.[7] The firm brought in some of the most influential families of the Middle East and Gulf Cooperation Council or GCC region as investors and got involved in several landmark PE deals. It grew rapidly, raising almost US$6 billion, significantly increasing the management companies value and distributed gains to investors.

Building Samena Capital

By 2007 as he was turning 40, he is understood to have started looking for the next challenge in his life and career.[21] In 2008, he set up Samena Capital [22] along with key partners and co-LSE alumni, Ramiz Hasan,[23] Simon Wong,[23] Samir Fancy.[23] Shortly thereafter, the firm brought in V-Nee YEH, a member of the Executive Council of Hong Kong Special Administrative Region,[24] as a shareholder. YEH added a valuable and much needed dimension—a Greater China capability—to the Samena founding partners’ existing expertise in South East Asia, India, Middle East and North African markets. The idea behind establishing Samena in 2008 was to bring together a group of like-minded, highly successful entrepreneurs and business leaders (in the Asian, Greater China, Indian and Middle Eastern countries) as shareholders that invest in both the fund and the company, and using their access to identify investment opportunities.[22] Samena’s assets under management have grown significantly over the last five years to over US$800 million.[25] The firm’s flagship Samena Special Situations Fund (SSSF I) was launched in August 2008, raising US$180 million amidst what was one of the most challenging capital raising environments in the history.[26] The five-year, closed ended fund with a private equity structure, seeks opportunities in listed companies in the SAMENA region that have stable mature businesses with a strong management and technical knowhow, enabling them to take advantage of cross border opportunities. The SSSF I has repaid 70% of its capital to investors by June 2014.[27] As a follow up to SSSF I, the company launched Samena Special Situations Fund II, which had an initial closing of US$315.5 million in June 2011(the fund had a final closing in June 2013 of US$340 million).[28] It is felt that Samena Capital’s biggest asset (and differentiating factor) remain its shareholders, which are not only geographically diverse but also bring expertise across a cross section of industries.[29]

The shareholders include: HE Sheikh Nahayan Bin Mubarak Al Nahayan, minister of culture, youth and community development, UAE; Samir Fancy, chairman and founder of Oman’s oil and gas giant Renaissance Services SAOG; Sheikh Nawaf Nasser Bin Khaled Al Thani (belonging to the House of Thani), chairman and CEO of Qatar’s Nasser Bin Khaled Holding; Ziad Al-Turki, Vice Chairman of ATCO Group, one of Saudi Arabia’s premier family groups; Kamal Bahamdan, co-founder and CEO of Safanad and ex CEO of Bahamdan Group; Gratian Anda, chairman and CEO of IHAG Holding Corp, one of the leading Swiss family owned group of companies; Pansy Ho and Daisy Ho, the CEO and CFO, respectively, of Shun Tak Holdings; H.E. Hussain Al Nowais, the Chairman of Al Nowais Investments, a family owned conglomerate business; HE Maqbool Ali Sultan, former minister of commerce and industry of Oman; HE Sheikh Mohammed Bin Essa Al-Khalifa, senior political advisor to the Crown Prince of Bahrain; HE Sheikh Ahmed Al Thani, director of Nasser Bin Faleh Al Thani Group and former minister of communications and transport of Qatar; Sheikh Sultan bin Saleh bin Sultan, President and CEO of Salehiya Establishment, a leading Saudi Arabian pharmaceutical and medical equipment distributor; HE Sheikh Sultan bin Saqr Al Qassimi, managing director and co-founder of GIBCA, a highly respected industrial, manufacturing, construction, investment and real estate development group in the United Arab Emirates; Mishal Al Ardi, CEO of Al-Shuwayer Group of companies, a leading family owned business group in Saudi Arabia; Mohammed Al Barwani, founder and chairman of MB Holding in Oman; the Capricorn Investment Group; Richard Elman, executive chairman and founder of Hong Kong’s Noble Group business; Rana Talwar, managing partner and founding chairman of Sabre Capital; Shyam Sunder Bhartia and Hari Bhartia, chairman and co-chairman of Indian pharmaceutical giant, Jubilant Life Sciences; Ramiz Hasan, founder of Japan-focused hedge fund Invicta; and Simon Wong, one of the co-founders of GC Capital)[31].

Philosophy and beliefs

His innings at ANZ, Taib Bank and Oriel Investment Company, as well as his formative years in India, England and the Middle East, allowed Saraf to closely observe the flow of capital and changing macro-economic equations between regions (for example Middle East money into the Indian subcontinent) very early on, an experience that shaped his global thought process to a large extant.[21] Saraf was also involved in several strategic regional and international restructuring, buyouts, M&As during his 22-year career in asset management, investment banking and entrepreneurship.[30] With skills acquired through these, he is widely seen as a cross–border specialist and a seasoned macro thinker.[30] In a 2011 CNBC interview [30] he is quoted as saying, “The new wave [of investments] is all about cross border opportunities; we need to look at companies that have the ability to tap across opportunities in India, rest of Asia, China and the Middle East, the ability of companies to buy and build in these markets, and have the management bandwidth to expand business beyond borders.” Saraf believes that in the changing world post the 2008 global financial crisis, value creation will require a new approach; there are profound socio-economic changes but amidst a rapidly integrating and globalised world, and that gives rise to strong opportunities for companies to acquire and create businesses across the global economies. In that context, Saraf’s role is seen by many as a catalyst for inter-regional economic co-operation and facilitator of growth.[31] In another interview,[19] Saraf was quoted as saying, “If we look back at the 15th century, India, China and the Middle East dominated the world trade scene, and I believe that this will be the case going forward. However, integration will be the key to capturing the opportunities that come with this change—the real results will come from families and business houses in these economies coming together, trusting each other and building businesses together, like the old Silk Route along which ideas and wealth were traded. The idea behind forming Samena Capital was to create an eco-system for this integration.” The Desert Capitalist, a book released by the World Economic Forum’s Arab Business Council, highlights Saraf’s significant achievements in the arena of Private Equity in the Middle East, and calls him the “flamboyant investor with exceptional asset raising and relationship management skills.”.[32]

Personal life and philanthropy

Saraf and his wife are actively involved with the Little Dreams Foundation, a Geneva-based charity that supports underprivileged children with outstanding talent in areas such as music and sports.[33] Saraf is also on the World Advisory Board of WorldView, a CBA [Commonwealth Broadcasting Association] Project that aims to improve UK public understanding and awareness of the developing world via the mainstream broadcast and digital media. WorldView supports upcoming filmmakers that produce films with a social message in developing countries, and an aim to unite the world. WorldView is partnering with Games For Change,[34] a project that produces digital video games and mobile phone applications to raise the awareness about developmental issues across borders and fatal diseases such as typhoid and malaria. During his time at Abraaj, Saraf played a key role in the development of the London School of Economics Middle East Centre, instituting scholarships for 50 promising students from the region.[35]

See Also

References

  1. 1 2 "Market Visual". Retrieved 12,22,2011. Check date values in: |access-date= (help)
  2. ↑ "HedgeFund Intelligence". Retrieved 5,11, 2010. Check date values in: |access-date= (help)
  3. ↑ "Reuters". Retrieved 8,1,2014. Check date values in: |access-date= (help)
  4. 1 2 "The Economic Times". Retrieved 8,1,2014. Check date values in: |access-date= (help)
  5. ↑ "Zawya". Retrieved 1,5,2012. Check date values in: |access-date= (help)
  6. ↑ "TAIB Bank". Retrieved 10,3,2011. Check date values in: |access-date= (help)
  7. 1 2 3 4 5 6 7 8 "Businessweek". Retrieved 5, 5, 2011. Check date values in: |access-date= (help)
  8. ↑ "AsianInvestor". Retrieved 9, 30, 2013. Check date values in: |access-date= (help)
  9. ↑ "Little Dream Foundation". Retrieved 3,21,2011. Check date values in: |access-date= (help)
  10. ↑ "WorldView". Retrieved 3,03,2013. Check date values in: |access-date= (help)
  11. ↑ "London School of Economics". Retrieved 1,2,2012. Check date values in: |access-date= (help)
  12. 1 2 "Raffles Conversation" (PDF). Retrieved 5,4,2012. Check date values in: |access-date= (help)
  13. ↑ "Asian Venture Capital Journal". Retrieved 5,4,2012. Check date values in: |access-date= (help)
  14. ↑ "India Education Diary". Retrieved 5,3,2009. Check date values in: |access-date= (help)
  15. ↑ "Finance in India". Retrieved 9,5,2011. Check date values in: |access-date= (help)
  16. ↑ "Expo India". Retrieved 6,7,2011. Check date values in: |access-date= (help)
  17. ↑ "E-Ink Corportation". Retrieved 12,22,2011. Check date values in: |access-date= (help)
  18. ↑ "AME Info". Retrieved 8,3,2011. Check date values in: |access-date= (help)
  19. 1 2 "AsiaHedge". Retrieved 2,14,2012. Check date values in: |access-date= (help)
  20. ↑ "Private Equity International". Retrieved 3,9,2010. Check date values in: |access-date= (help)
  21. 1 2 "Business India" (PDF). Retrieved 3,16,2009. Check date values in: |access-date= (help)
  22. 1 2 "Financial Times". Retrieved 1,1,2012. Check date values in: |access-date= (help)
  23. 1 2 3 "Bloomberg Businessweek". Retrieved 2,1,2012. Check date values in: |access-date= (help)
  24. ↑ "Executive Council". Retrieved 1,1,2012. Check date values in: |access-date= (help)
  25. ↑ "Hedge Fund Intelligence". Retrieved 2,5,2012. Check date values in: |access-date= (help)
  26. ↑ "VC Circle". Retrieved 11/2/2011. Check date values in: |access-date= (help)
  27. ↑ "Invest In India". Retrieved 1/2/2012. Check date values in: |access-date= (help)
  28. ↑ "AVCJ". Retrieved 10,1,2011. Check date values in: |access-date= (help)
  29. ↑ "Asian Investor". Retrieved 8,3,2010. Check date values in: |access-date= (help)
  30. 1 2 3 "CNBC". Retrieved 10/3/2011. Check date values in: |access-date= (help)
  31. ↑ "Bloomberg". Retrieved 10,3,2011. Check date values in: |access-date= (help)
  32. ↑ Desert Capitalists. Retrieved 3/5/2010. Check date values in: |access-date= (help)
  33. ↑ "Whatever it takes". Retrieved 2,5,2012. Check date values in: |access-date= (help)
  34. ↑ "Games for Change". Retrieved 2,2,2011. Check date values in: |access-date= (help)
  35. ↑ "Education Arabiya". Retrieved 2,2,2011. Check date values in: |access-date= (help)
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