RIYADH: Jada Fund of Funds has committed to Growth Catalyst Fund I, a Saudi private equity fund targeting SR750 million ($200 million) to invest in mid-market companies across the Kingdom.
Jada, a wholly owned subsidiary of the Public Investment Fund, is acting as an early institutional backer of the fund at its first close.
The announcement, which did not disclose the size of Jada’s commitment, comes as government-backed investors continue to support the expansion of Saudi Arabia’s private capital market through commitments to new investment vehicles.
In recent months, Jada Fund of Funds backed Stride Ventures Debt Fund V to broaden private debt financing, while the SIDF Investment Co. invested in Khwarizmi Ventures Fund II to support technology startups, underscoring a wider effort to develop a full spectrum of funding options for Saudi businesses.
Scaling Saudi companies
Growth Catalyst Fund I is a sector-agnostic vehicle licensed by the Capital Market Authority. It will invest in established and late-stage Saudi companies with proven business models and growth potential.
The fund seeks to help portfolio companies accelerate growth, strengthen governance and improve operational capabilities, preparing them for potential exits through strategic transactions or capital markets.
“Growth equity occupies a vital space in any mature private capital ecosystem, supporting companies that have proven their model and are ready to scale,” said Bandr Alhomaly, CEO and managing director of Jada.
“Our commitment to Growth Catalyst Fund I reflects our confidence in the growth equity opportunities within Saudi Arabia and our deliberate focus on developing the next generation of fund managers who will help shape the Kingdom’s investment landscape,” he added.
The annoucement follows an investment in the same fund in April by Saudi Venture Capital, a subsidiary of the SME Bank, which is part of the National Development Fund.
The value of SVC’s investment was not disclosed.
SVC reported in March that its cumulative commitments had reached $1.2 billion across 65 funds, helping attract $5.9 billion from investment partners.
Jada said the recent commitment supports its efforts to back emerging fund managers, develop regional investment talent and strengthen Saudi Arabia’s private capital market.
The fund’s focus on high-growth Saudi small and medium-sized enterprises aligns with the Kingdom’s economic diversification objectives under Vision 2030, according to the statement.
Private capital development
Turki Al-Dayel, founder and CEO of Growth Catalyst, said: “We are pleased to welcome Jada Fund of Funds as an anchor investor in Growth Catalyst Fund I.”
He added that the support reflects “strong confidence in our strategy and in the opportunity within Saudi Arabia’s mid-market segment.”
Jada was established to support Saudi Arabia’s private capital ecosystem through commitments to venture capital, private equity and private debt strategies.
The statement said expanding growth-equity options was an important step toward supporting a full range of financing solutions for enterprises at every stage of maturity as Saudi Arabia deepens its capital markets and attracts increasing levels of foreign and domestic institutional investment.
https://www.zawya.com/en/press-release/jada-fund-of-funds-backs-growth-c...
