The Jada Fund of Funds, a branch of the Saudi Public Investment Fund, is channeling 1 billion Saudi riyals (approximately $266 million) into a venture debt fund to propel the growth of this financial sector within the kingdom. This move signifies Jada’s inaugural foray into venture debt and its sophomore venture in the broader private credit landscape.
Partners for Growth VII, the recipient of the investment and managed by the global private credit specialist Partners for Growth, oversees a portfolio of assets valued at $1 billion. The fund has garnered the confidence and backing of a diverse group of seasoned institutional investors from across the globe.
“Last November, we marked our initial venture into the private credit domain and pledged to continue augmenting our investments in this asset class,” stated Bandr Alhomaly, CEO of Jada Fund of Funds. He reaffirmed the organization’s strategy to enhance funding options, attract international investments, and foster economic expansion and diversification in line with Saudi Arabia’s Vision 2030.
The fund was established by the PIF, with an investment capital of roughly $1 billion, and focuses on empowering small and medium-sized enterprises (SMEs) in Saudi Arabia by channeling investments into venture capital and private equity funds.
As of March 2024, Jada has allocated funds to 39 different funds, committing a total of 3.5 billion riyals. These investments have been instrumental in the creation of approximately 12,000 jobs and the support of more than 500 SMEs within the country.
One notable collaboration includes Jada’s alliance with Aliph Capital, which is directed towards bolstering SMEs through an investment in the GCC-focused Aliph Fund I. Furthermore, Jada has pledged to invest in Investcorp’s $500 million Saudi pre-IPO growth fund, which was publicized in June.
In the ongoing year, Jada has pledged investments amounting to 1 billion riyals, a commitment that has contributed to Saudi Arabia’s ascension as the top country in the MENA region for venture capital funding for the first time.
The kingdom is ardently working towards diversifying its economy, moving beyond its traditional reliance on oil. This strategy includes nurturing sectors such as technology, property, tourism, and infrastructure, as part of its Vision 2030. The overarching goal is to stimulate various industries to create employment and bolster the growth of the non-oil economy.