Riyadh: Saudi Arabia-based Jada Fund of Funds Company made its inaugural investment in private credit by investing in Ruya Partners’ $250 million fund. This marks Jada’s first step into the private credit market, reflecting its dedication to supporting SMEs in Saudi Arabia and the wider region, the company announced Tuesday.
Earlier this year, Jada broadened its investment scope to include private credit, and this recent investment is the initial foray into this promising asset class. Ruya Partners is an independent private credit firm that provides customized funding solutions to companies.
Bandr Alhomaly, CEO of Jada Fund of Funds Company, said, “This deal is only the beginning of Jada’s support for the local private credit market, with many more likely to come soon. Our new strategy reinforces our commitment to providing innovative and flexible funding solutions to promote private sector-led growth and economic diversification under the Kingdom’s Vision 2030.”
With a target fund size of $250 million, the Ruya Private Capital I LP fund provides investors with an opportunity to gain exposure to fast-growing and high-potential mid-market companies across a variety of sectors.
Rashid Siddiqi, Founding Partner of Ruya Partners, said, “Providing non-dilutive private credit capital solutions to mid-market companies in situations where traditional financing is not available or accessible should enable such companies to continue on a growth trajectory and help them step-change their business over time to a size where they can access local and regional capital markets.”
Jada was established by the Public Investment Fund with an investment capital of SAR 4 billion (approximately $1 billion) with the aim of financing the growth of small-and-medium enterprises in Saudi Arabia in a sustainable manner. Jada has 33 funds under management, with SAR 2.9 billion committed. Through these funds, it has supported over 11,000 jobs, by supporting nearly 500 SMEs.