• The Gulf's private equity and venture capital market is evolving, with local investors showing increased interest in alternative investments but also demanding greater transparency and longer investment horizons from fund managers. This is partly due to the market's relatively young stage, with many funds having limited track records.
• Mismatched timelines between fund managers and investors, particularly family offices new to venture capital, are causing friction, as unrealistic expectations for capital returns within six years clash with the typical eight-to-twelve-year horizon for VC funds. This has led to a slowdown in new commitments and delayed fund closes.
• Regional family offices are increasingly viewing PE-VC as a strategic tool for long-term growth and innovation, though many continue to allocate a significant portion of their capital to North American and European markets. A preference for direct investments, driven by a desire for control, and concerns over the standard "2 and 20" fee structure also present barriers.
• Lessons from India's mature PE-VC ecosystem highlight the importance of patience, relationship-building, and transparency for Gulf markets. Gulf investors seek actionable plans and clear roadmaps for exits and distributions, emphasizing Distributed to Paid-In Capital (DPI) and consistent value addition from fund managers.

Nitesh Kumar

The Gulf's private equity and venture capital ecosystem is at an inflection point, with local limited partners (LPs.........

Gulf investors seek more transparency from GPs: Panellists at VCCircle LP Summit

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The Gulf&#39;s private equity and venture capital ecosystem is at an inflection point, with local limited partners (LPs) increasingly open to backing...

Rajesh Ranjan

Ali & Sons Holding LLC

VCCircle LP Summit

Limited Partners

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