One of the Middle East's biggest buyout houses is hoping to recover from two consecutive loss-making years, by raising four funds targeting around $1.7bn (€1.4bn). The fundraisings will be watched closely by rivals in the Middle East as a bellwether for the local private equity market.

Bahrain-based Arcapita Bank hopes to start raising the funds after September, according to a source close to the situation. This would revive plans put on hold during the financial crisis to move away from its model of investing mainly from its own balance sheet.