PIF-backed Jada Fund of Funds to invest $266m to support Saudi Arabia’s venture debt sector

Jada Fund of Funds, a subsidiary of Saudi Arabia’s Public Investment Fund, is investing in a 1 billion Saudi riyal ($266 million) fund as it aims to support the growth of the venture debt sector in the kingdom.

The investment in Partners for Growth VII, managed by global private credit manager Partners for Growth, is the first investment made by the Riyadh company in venture debt and the second in the private credit space, Jada said.

The fund provides investors with exposure to fast-growing and high-potential mid-market companies across a variety of sectors. Partners for Growth, an international fund manager that has assets under management worth $1 billion, has secured commitments from a “wide range of sophisticated institutional investors from around the globe”, Jada said.

“Last November, we announced our first investment in private credit and promised to make additional investments in this asset class in the near future,” said Bandr Alhomaly, chief executive of Jada Fund of Funds. It announced its first investment in private credit space with an investment in Ruya Partners’ $250 million fund.

“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,” Mr Alhomaly added.

Jada, which was established by the PIF with an investment capital of about $1 billion, is providing funding to small and medium enterprises in Saudi Arabia through investments in venture capital and private equity funds. As of this month, Jada has invested in 39 funds, with 3.5 billion riyals committed. Through these funds, it has supported the creation of about 12,000 jobs in Saudi Arabia and supported more than 500 SMEs, it said.

In August, it joined forces with private equity fund manager Aliph Capital to support SMEs with an investment in GCC-focused Aliph Fund I, a $250 million target PE fund based in the Abu Dhabi Global Market that invests in medium-sized GCC companies.

Jada has also committed to investing in Investcorp’s $500 million Saudi pre-initial public offering growth fund, it said in June. Last year, it made commitments worth 1 billion riyals, contributing to Saudi Arabia being ranked first in the Mena region in venture capital funding for the first time.

Saudi Arabia is diversifying its economy away from oil, with an emphasis on the development of sectors such as technology, property, tourism and infrastructure as part of Vision 2030.

It is supporting the development of several industries spanning different sectors to generate employment and help its non-oil economy to grow.

Our strategy reinforces our commitment to providing additional funding solutions and attracting FDI

BANDR ALHOMALY

Chief executive of Jada Fund of Funds