Derayah commits SAR 244M to AI, tech-focused fund

Logo of Derayah Financial Co.

Derayah Financial Co. entered into a binding investment commitment of SAR 244 million ($65 million) in HOF Capital Strategic Opportunities Fund II (Cayman).

In a statement to Tadawul, the company said it paid 40% of the total commitment, or SAR 97.5 million ($26 million), upon closing on Aug. 28, 2026.

The remaining 60% will be paid over the following 24 months, with the payment schedule and amounts subject to adjustment based on the fund’s requirements.

The commitment was entered into with HOF Capital Management, in its capacity as the fund manager. The transaction will be financed through the company’s internal resources and available credit facilities.

The underlying asset is the fund, which is managed by the fund manager. The fund has a target size of SAR 4.5 billion ($1.2 billion), with a maximum size of SAR 5.62 billion ($1.5 billion).

Derayah expects the fund to build an investment portfolio of around 15 investments across artificial intelligence (AI), enterprise software and advanced technologies. The number of portfolio companies will remain at the fund manager's discretion.

The fund’s investment strategy focuses on capitalizing on investment opportunities linked to AI technologies amid rapidly growing demand for AI-based solutions and technologies, as well as other advanced technologies.

The company plans to launch a multi-strategy fund focused on AI and technology, subject to obtaining the required regulatory approvals, the statement said.

Upon its launch, Derayah intends to transfer its investment in the fund to the new vehicle, which will be managed by its asset management team.

This aligns with the company’s strategy to expand its asset management business, particularly in private markets, enabling investors to access high-quality investment opportunities in leading global technology and AI companies.

Derayah expects the transaction to contribute positively to its asset management business through subscription and management fee revenues, following the establishment and launch of the new fund and its successful offering to prospective investors.

There are no related parties in the deal, the statement said.