PIF-backed Jada to invest in Investcorp’s $500m Saudi pre-IPO growth fund

Investcorp's fund has already invested in technology firm NourNet and in Mena’s largest digital freight network TruKKer

Saudi Arabia led the Mena region in attracting the highest number and value of venture capital investment for its start-ups in the first quarter of 2023. EPA

Jada Fund of Funds, a subsidiary of Saudi Arabia’s Public Investment Fund, has committed to investing in Investcorp’s $500 million Saudi pre-initial public offering growth fund.

Launched last year, the Saudi pre-IPO growth fund invests in a diversified portfolio of companies, primarily based in the kingdom, that are aiming to gain access to public capital markets over the next few years.

“We are excited about Jada’s commitment to anchor our fund,” said Walid Majdalani, head of private equity for the Middle East, North Africa and South-East Asia.

“We share a common objective of supporting national champions in their growth and value creation journey, contributing to the kingdom’s economic development and diversification objectives.”

Bahrain’s Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, led a $100 million pre-IPO funding round in TruKKer last August. TruKKer is the region’s largest digital freight network, with more than 45,000 vehicles on its platform.

This was followed by the fund’s investment in NourNet, one of Saudi Arabia’s leading technology companies, with more than 1,200 clients operating across about 20 industries.

The fund is focused on equity growth capital investments across a range of companies, with the potential to gain access to capital markets within three to four years. It provides investors with an opportunity to gain exposure to growing businesses in strategic, high-growth and underserved sub-sectors such as business services, transport and logistics, and health care.

“One of Jada's primary goals is to support the growth of the local private equity ecosystem, and we look forward to see Investcorp's Saudi pre-IPO growth fund playing an impactful role in supporting companies across the kingdom that have strong growth trajectories and the ability to invigorate the wider SME community,” said Bandr Alhomaly, chief executive of Jada Fund of Funds Company.

Jada, which was established by PIF with an investment capital of nearly $1 billion, is a critical component of Saudi Arabia’s Vision 2030 for the purpose of leading the development of a thriving private equity and venture capital ecosystem in the Arab world’s biggest economy.

Saudi Arabia led the Mena region in attracting the highest number and value of venture capital investment for its start-ups in the first quarter of 2023.

The kingdom was the most funded for start-ups in the three months to March, attracting $359 million out of the total $818 million capital for the Mena region, a report compiled by start-ups platform Magnitt showed.

Egypt came in second with $284 million, followed by the UAE at $152 million, the report found.

“Jada’s commitment to Investcorp Saudi pre-IPO fund marks the start of a long-term strategic partnership, as Investcorp continues to grow its assets under management across multiple asset classes in Saudi Arabia,” said Yasser Bajsair, head of Investcorp Saudi Arabia.