Meet the Master of Mideast Buyouts

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“We are in the sweet spot,“ says Naqvi, seen as an ideal partner for U.S. buyout firms Aurore Belkin/Arab ianEye/Redux

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QUIET COUPS

It takes finesse to close a deal, as it did for Naqvi with Aramex International, a courier company. Fadi Ghandour, founder and CEO of Aramex, recalls a series of languorous lunches and dinners over several months with Naqvi. The affable Naqvi ultimately persuaded Ghandour a buyout was the best move. After paying $65 million for the company, Abraaj took it public for $190 million in 2005. Aramex is now worth $950 million.

Naqvi scored again in late 2007 with the sale of his 25% stake in Egyptian investment bank EFG-Hermes to Dubai Financial Group, which is owned by the emirate's ruler, Sheikh Mohammed bin Rashid al Maktoum. His firm banked $600 million on the position, roughly a year after buying it. The quick flip raised eyebrows among finance types. But Naqvi insists it was the right time to sell.

Despite a more favorable environment, buyout specialists like Naqvi still face certain obstacles. His targets are often family businesses. So Naqvi usually has to convince the proud owners that a tie-up with Abraaj is critical for taking the company to the next level.

Saudi Prince Khalid bin Sultan needed help when he sold Abraaj a 33% stake in his Riyadh-based National Air Services for $170 million in 2006. Existing management was stumbling amid ambitious plans to launch both a business-class-only airline and a discount carrier, on top of operating a local joint venture with Berkshire Hathaway's (BRK) NetJets. After the deal closed, Naqvi wasted no time parachuting in a team of 14 turnaround specialists, who stayed for almost a year. He replaced top brass with global talent, including new CEO Ed Winters, the former chief operating officer at Britain's easyJet. Orders are currently in place for more than 100 planes. Now that both the low-cost and business-class airlines are flying, Naqvi plans to take the company public by the end of the year.

Success, though, is complicating Naqvi's agenda. He says he has been approached by several U.S. and European private equity firms interested in buying Abraaj. Although he is open to a partnership with any of the new arrivals, he doesn't see any reason to work with just one company. All the players can tap into the same pools of capital, Naqvi reasons. But he has better access to regional deals. Says Naqvi: "We are on such a steep growth trajectory that being acquired would mean leaving money on the table."