This Practice Note discusses the fundamentals of private equity transactions in mergers and acquisitions, with a focus on private equity transactions in the UAE and the Middle East and North Africa (MENA) region. It first provides a description of private equity and discusses the characteristics of private equity funds most common in the UAE and greater MENA region. It goes on to provide a general timeline for a typical private equity fund acquisition transaction and provides an overview of the primary features of such transactions. Finally, this Practice Note discusses considerations specific to UAE and MENA private equity transactions, including ownership restrictions and taxation.

• Acquisition: The acquisition of a target by a PE fund.

• Acquisition agreement: The agreement between a PE fund as buyer and the owner(s) of a target as seller(s), in relation to an acquisition of such target.

• ADGM: Abu Dhabi Global Market.

• DIFC: Dubai International Financial Centre.

• DFSA: Dubai Financial Services Authority, the financial regulatory agency of the DIFC.

• FSRA: Financial Services Regulatory Authority, the financial regulatory agency of the ADGM.