Marking a strategic expansion in the realm of venture debt, the Jada Fund of Funds, a branch of the Saudi Public Investment Fund (PIF), has made a substantial investment in Partners for Growth (PFG), which oversees approximately SR3.75 billion ($1 billion) in assets.
This pivotal step is anticipated to bolster the venture debt landscape within the Kingdom, as indicated by a recent announcement.
Launched with a foundation capital of SR4 billion by PIF, the establishment of Jada is a pivotal element in the Kingdom’s broad strategy for economic and social progress.
With a firm commitment to energizing the growth of the private capital sector in Saudi Arabia, Jada Fund of Funds has disclosed its stake in Partners for Growth VII, an affiliate of PFG managing a fund worth SR1 billion.
The formal agreement was inked in Riyadh by Bandr Al-Homaly, CEO of Jada Fund of Funds, and Armineh Baghoomian, managing director at PFG.
Partners for Growth VII presents investors with a chance to invest in rapidly expanding mid-market companies with high potential across diverse sectors.
PFG has previously invested in regional fintech leaders such as Tabby and Tamara, demonstrating its influential role in the sector.
Attracting a broad spectrum of seasoned institutional investors globally, PFG has become a significant force in drawing foreign direct investment to the Kingdom.
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,
stated Al-Homaly.
He further emphasized the strategy’s alignment with attracting foreign investment to fuel economic growth and diversification, in accordance with Vision 2030.
Baghoomian expressed enthusiasm about the partnership with Jada, highlighting the shared goal of enhancing Saudi Arabia’s private credit sector and fostering entrepreneurial spirit and technological progress.
In an extraordinary turn of events, Jada made history in 2023 with a record-breaking commitment of SR1 billion, positioning Saudi Arabia at the forefront of venture capital funding in the Middle East and North Africa for the first time.