MAGNiTT CEO says outlook positive on private equity in Q4 2025, 2026

The outlook for the private capital sector in Q4 2025 and 2026 is positive, with investor appetite gradually returning, Philip Bahoshy, CEO and founder of MAGNiTT, told Argaam in an interview.

This is in context of events such as the Private Capital Forum (PCF), the Future Investment Initiative (FII), and others, the chief of the data and research platform for private capital in emerging markets (EMs) said.

Private capital is expected to be strong in Q4 2025, he added.

He noted that total venture capital (VC) investments in Saudi companies reached SAR 1.3 billion during the first nine months of 2025, according to MAGNiTT’s Q3 2025 venture capital report.

This as a record figure for the period, Bahoshy said, highlighting the growth of venture capital in Saudi Arabia and the broader Middle East. He added that these investments indicate a rebound and recovery of this asset class, with data showing a 100% increase in mergers and acquisitions (M&As), which are vital for exits in Saudi Arabia, alongside a 44% rise in investors investing in Saudi-based companies.

The report indicated that late-stage investments and mega deals resumed in Q3 2025, including companies like Tabby and Ninja, forecasting that 2025 to be a record year for private capital investments in Saudi Arabia.

Looking ahead to 2026, Bahoshy expects that the positive geopolitical environment to support continued investments from international investors, while lower global interest rates are likely to sustain both regional and international appetite for venture capital and private equity. However, he noted that oil prices remain a key question, affecting sovereign entities’ investment in private capital in the region.

The CEO explained that exits in the region are typically seen as “orange” rather than “red” signals, meaning that founders, investors, and governments seek liquidity and returns on their investments. He noted that there are three main exit routes:

1. M&As, which have seen successful cases in the past such as Uber-Careem and Amazon-Souq.com, are expected to continue in 2026.

2. Initial public offerings (IPOs) are witnessing increased focus, with 2026 and most likely 2027 to see an acceleration in activity.

3. Secondary acquisitions through investments and financing are also expected to rise by 2026.