SAB Invest launches private credit fund with initial investments of over SAR 300M

Logo of SAB Invest 

SAB Invest announced the launch of SAB Invest Multi-Strategy Private Investment Fund I, which is aimed at delivering high, recurring income to investors through investing in a diversified portfolio of private credit opportunities across Saudi Arabia, the GCC, and the MENA region.

Ali Almansour, Managing Director and CEO of SAB Invest, said the fund aims to raise SAR 1 billion in total commitments over a period of 6-12 months, noting that over SAR 300 million in initial investments have already been raised since obtaining approval from the Capital Market Authority (CMA) last month. 

He emphasized that the fund features a comprehensive Shariah-compliant structure, offering an innovative and distinctive investment opportunity that has attracted significant client interest — as reflected in the strong demand seen since the announcement.

Almansour noted that SAB Invest seeks, through this product, to provide high-quality, diversified investment solutions, designed to meet the evolving goals of its clients and support their financial strategies throughout different stages of their investment journeys.

Osama Alowedi, Chief Investment Officer at SAB Invest, said the fund establishment plan began nearly a year ago, with the goal of developing a product that meets market needs and aligns with investor aspirations.

Alowedi indicated that private credit solutions provide an effective addition to the financing landscape through offering customized solutions and greater efficiency in terms of time and cost. He stressed that what distinguishes this type of financing is its flexibility and ability to adapt to companies’ specific needs.

Further, Alowedi noted that the Saudi and Gulf economies are undergoing rapid transformation, driven by digitization and sectoral diversification. This shift requires more versatile and flexible financing solutions, particularly for sectors based on technologies and services, where private credit offers suitable alternatives aligned with this direction.

He pointed out that several founders and business owners see real value in private credit solutions, due to the deep engagement and understanding fund managers offer, going beyond the traditional asset-valuation based lending model.

The fund’s preparatory phase involved the development of a pipeline of well-vetted investment opportunities, alongside the establishment of robust risk management frameworks to support fund deployment and enhance the potential for sustainable growth.

Initial subscriptions to the fund came from a diverse base of SAB Invest clients, including institutional investors, family offices, asset managers, and high-net-worth individuals.

Regarding the fund’s target investment categories, SAB Invest explained that it will focus on listed and unlisted sukuk issued by small and medium-sized enterprises (SMEs), debt investments in high-growth tech companies, structured debt for mid-sized enterprises, and infrastructure debt instruments.

The company expects the fund to deliver an annual return of 12%-13% to investors where 10%-11% of that to be distributed on a quarterly basis.

SAB Invest added that the fund’s investments will be secured by a range of guarantees and assets, including real estate mortgages, share pledges, and cash reserves. The fund’s board of directors includes independent members to oversee investment governance.