PIF’s Jada unveils its first investment in venture debt

The agreement between the two bodies was signed in Riyadh. Shutterstock
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RIYADH: 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.