PIF, King Street sign MoU to launch new private credit fund

The Public Investment Fund (PIF) and global investment manager King Street Capital Management Co. signed a non-binding memorandum of understanding (MoU) to establish a new private credit fund.

Under the agreement, PIF will act as a cornerstone investor in the fund, which will focus on Saudi Arabia and the broader MENA region.

In a statement, PIF said the fund will provide tailored financing solutions to companies and offer asset-based lending across Saudi Arabia and the MENA region. It will also have flexibility to pursue attractive credit opportunities in public markets and special situations.

PIF added that the partnership strengthens its strategic financial ties with leading global asset managers, supporting the development of Saudi Arabia’s capital markets and attracting international capital and expertise through new investment strategies.

The fund aims to address the growing demand for capital from local and regional companies, with PIF’s cornerstone investment expected to support long-term foreign inflows and help finance key sectors.

PIF noted that King Street has expanded its presence in Saudi Arabia and MENA in recent years and is in the process of opening an office in Riyadh to capitalize on investment opportunities.

The launch of the fund and approval of PIF’s cornerstone investment remain subject to conditions precedent, including signing final binding agreements, obtaining regulatory and internal approvals, and completing specific procedural requirements.