Arab News, Wed, Mar 13, 2024 | Ramadan 3, 1445
PIF’s Jada unveils its first investment in venture debt
Saudi Arabia:
Saudi Public Investment Fund subsidiary Jada Fund of Funds has entered venture
debt, investing in Partners for Growth, which has SR3.75 billion ($1 billion) in
assets under management.
This move will help support the venture debt
ecosystem in the Kingdom, a press release said.
The subsidiary was established by PIF with an
investment capital of SR4 billion, as the creation of Jada is a critical
component to the Kingdom’s comprehensive economic and social development plan,
the release noted.
Demonstrating its commitment to playing a leading
role in further accelerating the growth of the private capital ecosystem in
Saudi Arabia, Jada Fund of Funds announced its investment in Partners for Growth
VII, a subsidiary of Partners for Growth, which holds a fund a size of SR1
billion.
The agreement between the two bodies was signed in
Riyadh by Bandr Al-Homaly, CEO of Jada Fund of Funds, and Armineh Baghoomian,
managing director at PFG.
Partners for Growth VII provides investors with an
opportunity to gain exposure to fast-growing and high-potential mid-market
companies across a variety of sectors.
PFG had previously made investments in the
region’s fintech giants, Tabby and Tamara.
The international fund manager has secured
commitments from a wide range of sophisticated institutional investors from
around the globe, making it a serious contributor to foreign direct investment
in the Kingdom, the release noted.
“Last November, we announced our first investment
in private credit and promised to make additional investments in this asset
class in the near future. Delivering on that promise, our investment in Partners
for Growth VII marks our second investment in the local private credit space and
first in venture debt,” Al-Homaly said.
He added: “Our strategy reinforces our commitment
to providing additional funding solutions and attracting foreign direct
investment to promote economic growth and diversification guided by Vision
2030.”
For his part, Baghoomian said: “We are thrilled to
partner with Jada to accelerate the growth of Saudi Arabia's private credit
sector. This collaboration exemplifies our shared commitment to fostering
entrepreneurship, driving technological advancement, and unlocking opportunities
for local talent.”
In 2023, Jada had an unprecedented year with a
record-breaking commitment of SR1 billion, contributing to Saudi Arabia ranking
first in the Middle East and North Africa region in venture capital funding for
the first time.