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PIF-backed Jada Invests $266 Million in Venture Debt to Boost Saudi Arabia’s Innovation Ecosystem

PIF-backed Jada Invests $266 Million in Venture Debt to Boost Saudi Arabia's Innovation Ecosystem

Jada Fund of Funds, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), is injecting 1 billion Saudi riyals ($266 million) into a venture debt fund, marking its inaugural foray into this space and its second venture into private credit.

The investment in Partners for Growth VII, managed by global private credit manager Partners for Growth, underscores Jada’s commitment to nurturing the venture debt ecosystem in Saudi Arabia. This move aims to bolster the growth and sustainability of innovative businesses in the kingdom.

Partners for Growth VII offers investors exposure to rapidly expanding mid-market companies across various sectors, providing a platform for supporting high-potential ventures.

Bandr Alhomaly, CEO of Jada Fund of Funds, emphasized the strategic significance of this investment, stating, “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.”

Jada Fund of Funds, established with an investment capital of approximately $1 billion by PIF, plays a pivotal role in funding small and medium enterprises (SMEs) in Saudi Arabia through investments in venture capital and private equity funds. To date, Jada has committed funds to 39 ventures, with investments totaling 3.5 billion riyals, facilitating the creation of around 12,000 jobs and supporting over 500 SMEs in the kingdom.

In alignment with its mission to catalyze economic diversification and growth, Jada has partnered with key players in the private equity landscape, such as Aliph Capital and Investcorp, to drive investment in Saudi Arabia’s burgeoning non-oil sectors. This strategic alignment with global fund managers underscores Jada’s pivotal role in facilitating the kingdom’s transition towards a knowledge-based economy.

Saudi Arabia’s focus on economic diversification, outlined in Vision 2030, underscores the imperative of fostering innovation and entrepreneurship across sectors. Jada’s latest investment in venture debt reflects its commitment to propelling Saudi Arabia’s innovation ecosystem forward, positioning the kingdom as a hub for technological advancement and economic resilience.

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