Family Office. Global Vision. Investment Overview
Investment Approach
Highly Respectable Middle East Based Investment Company
Starling, having established itself as a highly respectable Middle East based investment company, possesses a deep and sophisticated level of knowledge in private equity gained through years of experience and study. This expertise makes Starling a valued partner to many of the world’s most successful and experienced funds looking for ‘Qualified’ investment partners based in the Middle East presence, partnership and know-how.
Starling has developed mutually profitable long-term relationships with several global private equity funds. When appropriate, Starling may take advantage of co-investment opportunities in parallel with the limited partnerships in which it invests.
While continuing its strategy of investing in private equity funds focused on buyouts (MBO and LBO) and venture capital funds, Starling actively seeks a sufficiently diversified portfolio to allow for the management of investment risks. Most of the firm’s investments are in select well-managed limited partnerships investing in quality companies and technologies.
Diversification
Starling mitigates its investment risk through diversification. This is usually done along four categories (i) investment stages (venture, growth, buyouts); (ii) vintage years; (iii) industry specialization (sector agnostic); and, (iv) geographies (US, Europe, Emerging Economies etc).
Starling also diversifies its portfolio by making select direct investments in investment opportunities that fit the company’s investment strategy in conjunction with the funds or directly.
Regions
Europe
The Eurozone economy is undergoing gradual recovery. The economy is expected to continue growing at a modest pace of 1.5% to 1.9%. Major economies are expected to continue unscathed owing to stable industrial activity, low oil prices, domestic demand and an accommodative monetary policy. Overall however, the Eurozone continues to face challenges of low inflation, high unemployment, fiscal and public debt etc
US
The US economic outlook is healthy. The economy has shown steady progress in the last three years with GDP growth in the 2-3% range, unemployment rate dropping 1% each year, low inflation and improving wage growth. With a solid and steady path towards recovery, the US economic growth appears to be strong. Falling energy prices, threat of a credit crunch will pose a risk to the economy in the near term.
Asia
While Asia’s growth has recently been disappointing, the growth expectation is at 5%-6% percent, remaining the global growth leader. The region’s growth should benefit from relatively strong labor markets and disposable income growth along with the ongoing gradual recovery in major advanced economies. Lower commodity prices should help consumption in most major Asian economies. However, risks to growth dominate, especially the probability of a steeper slowdown in China. Also a stronger US Dollar accompanied by a tightening of global financial conditions, weaker growth in Japan, and weaker regional potential growth could also dim Asia’s growth prospects. Commodity prices will also hurt the commodity dependant sectors. All in all, despite its resilient outlook, Asia is facing a challenging economic environment. This calls for careful selection of general partners in a volatile but opportunistic region.
Direct Investments
Starling’s allocations are not entirely limited to Private Equity Funds. The company has made and will opportunistically continue to make direct investments, through its active co investment program and by investing directly into companies. Starling’s direct investment exposure pans the GCC region and internationally. Going forward, Starling will continue to pursue its growth strategy and identify direct investment opportunities which present:
- A significant market opportunity
- Potential for growth in sales, income and value
- Strong, experienced and committed management
- A drive to succeed
Starling’s direct investment portfolio includes investments in Emaar Properties PJSC, Al Salaam Bank and RAK Petroleum—in all of which Starling is a founder investor.
