PIF ‘major investor’ in Brookfield’s new PE fund, $2B raised

Brookfield announced today, July 27, the first close of PIF-anchored Brookfield Middle East Partners (BMEP), a new private equity fund dedicated to investing in businesses based in Saudi Arabia and the wider Middle East region.

The new fund raised nearly $2 billion (nearly SAR 7.5 billion) from strategic investors, including a number of regional and international investment institutions, and its activities will focus on investing in companies within the Kingdom’s markets and the Middle East region, the fund said in a statement, a copy of which was received by Argaam, It explained that Brookfield is committing $500 million to the fund consistent with its longstanding approach of ensuring alignment with its partners. “As part of this initiative, Brookfield will make the Brookfield Academy available in Saudi Arabia. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for Brookfield partners’ professionals,” it said.

According to the statement, BMEP leverages Brookfield’s expertise through its offices in Riyadh and across its broader global network to pursue buyouts, minority growth equity, and other investment opportunities across a range of sectors, including financial, business and consumer services, industrials, technology, and healthcare.

Capital from the fund will be allocated to investments in the Middle East with a focus on the GCC in high-growth markets. The fund targets allocating 50% of its investments in Saudi Arabia, as PIF continues to attract capital inflow.

PIF’s investment in the fund aligns with its strategy to maximize returns and deliver long-term value through global partnerships, said the fund, adding that PIF partnerships are key to leveraging investment opportunities and fostering economic development, while enabling the development of local talent and capabilities.

The investment marks another step in PIF’s strategy to further deepen and diversify the Saudi capital market by partnering with global investors on commercially attractive opportunities, empowering financial institutions, broadening financing options for local businesses, and introducing new products, it added.