- The fund aims to raise $200 million to bridge the financing gap for growth-stage SMEs across Saudi Arabia.
Saudi Arabia’s Jada Fund of Funds, a subsidiary of the Public Investment Fund (PIF), has announced its first investment in Growth Catalyst Fund I, a private equity fund targeting $200 million to finance Saudi small and medium-sized enterprises (SMEs) in their growth stage.
The investment comes as many companies that have outgrown venture capital continue to face challenges in securing growth financing before becoming eligible for a public listing, highlighting a key funding gap within the Kingdom’s capital market.
A Jada spokesperson said the fund will focus on founder-led companies in the upper-middle market, with Saudi Arabia as its primary investment destination.
The fund will also have the flexibility to invest in pre-IPO companies, although Jada did not disclose the value of its commitment.
Saudi Arabia’s SME financing gap is estimated at SAR 300 billion to SAR 500 billion, making private equity a strategic financing tool to help businesses scale beyond the startup phase.
Bandr Alhomaly, CEO and Managing Director of Jada Fund of Funds, said the investment aligns with the company’s strategy of supporting emerging Saudi fund managers while expanding the pool of institutional capital available to the Kingdom’s private markets.
Growth Catalyst Fund is led by its founder and CEO, Turki Al-Dayel, and aims to help established SMEs accelerate their expansion before exiting through initial public offerings (IPOs), strategic acquisitions, or secondary transactions.
Read the article in
