Investment to support ongoing growth and geographic expansion of The Entertainer

Discount voucher market leader targets more countries in the Middle East and expands into Asia

Dubai, UAE, March 25, 2012:  Riyada Enterprise Development (RED), Abraaj Capital's US$ 650 million high growth small and mid-cap (SMC) investment platform, announced today its intent to  acquire a 50% stake in The Entertainer, a boutique consumer services company offering two-for-one discount vouchers for a variety of quality merchants including top restaurants, hotels, spas and entertainment outlets. RED's investment will enable The Entertainer to strengthen its operations in existing markets, expand its footprint into new geographies and execute a strategy to enable customers to buy and use the vouchers over digital mediums and mobile networks.

Established in Dubai in 2001, The Entertainer offers two-for-one discounts at quality outlets in the UAE, Bahrain, Oman, Qatar, Saudi Arabia, Kuwait and Cyprus.  The Entertainer publishes annual books for each country market containing vouchers for restaurants, hotel stays, family and leisure activities, beauty and spa treatments.

The Entertainer has established itself as a leading and trusted brand in the regions in which it operates.  Building up valuable relationships with leading hospitality brands and pioneering a win-win business model for consumers and the outlets it markets has enabled The Entertainer to maintain a strong market leader position in the Middle East discount voucher market. Some of the leading brands that partner with The Entertainer include the Jumeirah Group, Atlantis Hotel, IHG, Hyatt Group, Shangri-La, Fairmont, Hilton, Starwood and the Rotana Group.

Commenting on the transaction, Tom Speechley, Chief Executive Officer, Riyada Enterprise Development said:  "The Entertainer's regional first mover advantage and longstanding relationships with leading merchants allied with a uniquely pro-merchant business model differentiates the company from the online daily deal offerings."

Mr. Speechley added: "We believe that this investment will serve to accelerate The Entertainer's expansion, not only in the Middle East and North Africa (MENA) region, but also in Asia where there are tremendous growth opportunities. Today, the US discount voucher market, serving a population of just over 300 million, is estimated to be worth US$ 4.5 billion annually. By comparison, the MENA market, with a nearly identical population size, is currently in the very early stages of its development. This indicates to us the scale of the opportunity for the sector and particularly for The Entertainer, which is the region's market leader."

Donna Benton, Chief Executive Officer, The Entertainer has led the company through a path of sustained organic growth since 2001.

Discussing the investment, Ms Benton said: "We are excited to be partnering with Riyada Enterprise Development and look forward to rapidly expanding our geographic presence and improving usage convenience for our merchant partners and customers. We currently work with over 3,000 merchants and expect this number to be doubled in two years when we launch into Asia and other markets."

Ms Benton continued: "The Entertainer recorded strong growth during the period of rapid economic expansion here in the UAE and wider region.  As the two-for-one voucher market is generally counter-cyclical, our growth continued following the start of the global financial crisis and over the past few years.  We believe that The Entertainer is now positioned for even greater success as we enter into this new partnership with Riyada Enterprise Development."

RED is a targeted US$ 650 million investment platform focused on investing in high growth small and mid-cap companies (SMC) in the MENA region. RED targets individual investments of between US$ 500,000 and US$ 15 million, with a focus on providing growth capital for influential minority and majority stakes in these companies. The Entertainer is the 14th investment of the RED platform. In February 2012, Abraaj Capital announced the acquisition of small and mid-cap focused private equity firm Aureos Capital which has a presence in over 25 countries across Latin America, Africa and Asia. As part of the transaction, RED will become the MENA vehicle of Aureos Capital. 

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About Riyada Enterprise Development:
Riyada Enterprise Development (RED) is the US$ 650 million small and mid-cap investment (SMC)  platform of the Abraaj Capital group. RED targets individual investments of between US$ 500,000 and US$ 15 million, with a focus on providing growth capital for influential minority and, in some cases, majority stakes in SMCs. It is sector agnostic but prefers entrepreneurially run and innovative businesses that are scalable into new regional markets, and that can leverage technology to support their work. Its primary focus is on profitable SMCs in need of capital and institutional and strategic support to grow. The RED initiative operates at a regional and country-specific level, providing economies of scale and the ability to facilitate geographic expansion of its portfolio companies.

For further information, please contact:
Nicholas Nesson
ASDA'A Burson-Marsteller
Dubai, UAE
Tel: 971-4-4507600
Fax: 971-4-4358040
E-mail: n.nesson@asdaa.com 
  

© Press Release 2012