New Delhi, July 28 -- Jada Fund of Funds, an investment vehicle created by Saudi Arabia's sovereign wealth fund Public Investment Fund (PIF), has signed on as a limited partner to the debut vehicle of Growth Catalyst Fund, a private equity fund-based in the kingdom.
The Riyadh-based PE Fund is aiming to raise SAR 750 million (nearly $200 million) for the vehicle Growth Catalyst Fund I. The fund will provide growth equity capital to established small and medium-sized enterprises (SMEs) in Saudi Arabia, targeting businesses that have moved beyond the startup stage and are looking to scale up operations.
It marked the first close of the vehicle last month, securing capital commitments of SAR 360 million from leading government entities, investment institutions and endowments, alongside a group of institutional investors, family offices and individual investors, according to its website.
"The commitment reinforces Jada's continued catalytic role in the private equity ecosystem, with Jada acting as an early institutional backer of Growth Catalyst Fund I in its first close," Jada said in a statement.
It did not disclose the size of the commitment.
"Growth equity occupies a vital space in any mature private capital ecosystem, supporting companies that have proven their model and are ready to scale [up]," said Bandr Alhomaly, CEO and managing director of Jada.
"Our commitment to Growth Catalyst Fund I reflects our confidence in the growth equity opportunities within Saudi Arabia and our deliberate focus on developing the next generation of fund managers who will help shape the Kingdom's investment landscape."
Turki Aldayel, founder and CEO of Growth Catalyst, said Jada's investment would enable the fund to partner with founders and management teams of high-growth Saudi companies and support the expansion of the Kingdom's private sector.
The fund will invest across sectors rather than focusing on a single industry, and aims to help portfolio companies strengthen governance standards, improve operational capabilities and prepare for eventual exits through strategic sales or public market listings as well.
Jada Fund of Funds was set up in 2018 with $1 billion in capital from PIF to support the development of Saudi Arabia's private capital ecosystem. The platform invests across venture capital, private equity and increasingly private credit. Since inception, it has deployed close to $600 million across nearly 50 funds.
The firm has since invested in Iliad Tech Ventures Fund I, Investcorp's Saudi Pre IPO Growth Fund, Aliph Capital Fund I, OB - iMENA Rua Growth Fund I, Beco Capital, Global Ventures, Shorooq Partners, Nuwa Ventures, Hala Capital and 500 Falcons.
Published by HT Digital Content Services with permission from VC Circle.