Saudi Venture Capital (SVC) has announced a $30-million investment in a private equity fund managed by US-based General Atlantic.
Without divulging which fund it is backing, SVC said the vehicle will focus on investing in high-growth, tech-enabled companies across five core sectors of consumer, financial services, healthcare, life sciences, and technology.
This investment follows SVC’s strategy to attract top global fund managers to invest in Saudi-based companies “as well as stimulating investment for later stages,” Nabeel Koshak, CEO and board member at SVC, said in a statement.
Meanwhile, Bill Ford, Chairman and CEO of General Atlantic, sees “attractive investment opportunities” thanks to an upcoming period of dynamic growth and innovation in Saudi Arabia.
General Atlantic has made several investments in the Middle East such as Dubai-based online real estate platform Property Finder; remote monitoring and management platform Atera; mobile marketing AppsFlyer; and payment fraud management solution Riskified in Israel.
The $84-billion private equity firm’s Asian portfolio also includes Indian hospital chain Ujala Cygnus, Indonesian dairy firm Cimory, Filipino social platform Kumu, and Vietnam-based digital ecosystem VNLIFE, among others.
General Atlantic closed its sixth flagship fund at $7.8 billion in 2021. A year later, it raised $3.5 billion for an inaugural climate fund.
SVC was established in 2018 as a subsidiary of the SME Bank, one of the development banks of the Saudi Arabia National Development Fund.
The investment company makes both direct investments and commitments to private capital funds with its $2.2-billion AUM, according to its website.
Some global general partners (GPs) it has backed are Investcorp, TVM Capital Life Science, Endeavor Catalyst, and 500 Global.
Sovereign wealth funds from the Middle East have been active in global investments, particularly drawn to opportunities in Asia, namely Saudi Arabia’s Public Investment Fund, Abu Dhabi Investment Authority, Mubadala, Qatar Investment Authority, and Oman Investment Authority.
These funds are also calling for GPs from other regions to set up base in their turf. For instance, Southeast Asian venture capital firm Golden Gate Ventures has announced the first close of its $100-million debut Middle East and North Africa (MENA) fund.