Private equity firm KKR has appointed David Petraeus, head of its global risk assessment, as chairman of its Middle East arm as the company seeks to expand its footprint in the region.
KKR, based in New York and with offices in Dubai and Riyadh, is establishing a dedicated investment team in the region led by Julian Barratt-Due, a managing director at the firm, the company said on Monday. The company has had offices in the region since 2009 and deployed capital directly since 2019.
Mr Petraeus, a former CIA director and one-time commander of US Central Command, will lead the firm's Middle East operations in an expansion of his role as a partner at KKR and chairman of the KKR Global Institute, which assesses geopolitical issues. He will strengthen KKR’s presence and partnerships in the region, the company said.
"The Middle East is emerging as a leading investment powerhouse with a clear vision, impressive innovation, strong fiscal position, and increasingly partnership-orientated private sector and governments," Mr Petraeus said. "We see growing opportunities for KKR to partner with leading domestic businesses, bringing differentiated expertise to deliver value while supporting governments’ strategic economic goals."
KKR's total assets under management rose 15 per cent annually to $638 billion at the end of last year. The firm, one of the world's biggest by AUM, has set a target of surpassing $1 trillion in assets by 2030.
"We view the Middle East as an increasingly important destination for investment, with structural reforms, pro-investment policies and favourable demographic trends accelerating economic growth," Joe Bae and Scott Nuttall, co-chief executives of KKR, said.
The Middle East is increasingly attracting buyout firms that are now looking to build teams on the ground, invest in local businesses and help develop the region's asset managers.
In February, London-based private equity firm Permira said it plans to open an office in Dubai this year, to expand its footprint in the Middle East. In December, General Atlantic said it was opening a new office in Abu Dhabi, the second outpost for the US-based private equity company in the Middle East after Riyadh, as it aims to build on its $1 billion of investments in the region.
A private equity revival is starting to take shape globally following a rebound in deal-making in 2024, Bain & Company's Global Private Equity Report released in March found. Investments and exits, up 37 per cent and 34 per cent, respectively, reversed declines last year.
KKR, which has operated in the Middle East for more than 15 years, is strengthening its presence in the region at a time when deal activity has been complicated globally due to uncertainty stemming from US President Donald Trump’s trade tariffs.
In January, KKR and Gulf Data Hub said they were teaming up to invest more than $5 billion to boost the Dubai company's data centre infrastructure in the Gulf, as demand for capacity grows amid a technology boom. The deal marked KKR's first such investment in the region, with the company also acquiring a stake in GDH for an undisclosed amount.
Previous investments in the region include a partnership to create Adnoc Oil Pipelines. KKR also acquired a portfolio of commercial aircraft from Etihad Airways in 2020 through Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.
Mr Barratt-Due, who joined KKR in 2016, will lead the company's new regional investment team to identify investment and partnership opportunities in the region, with a focus on Gulf countries.
“The Middle East represents a compelling investment destination driven by the size and growth of the economy, favourable demographic trends, and a stable currency and jurisdictional climate," he said.
