Investcorp launches Saudi Pre-IPO Growth Vehicle

23 Nov 2021

Investcorp, a leading global provider and manager of alternative investment products, announced today the launch of a Saudi focused Pre-IPO Growth Vehicle (“The Vehicle”).

The Vehicle is dedicated to investing in a diversified portfolio of companies at a “pre-IPO” stage of development in Saudi Arabia, providing investors with an opportunity to gain exposure to growing and market-leading businesses in the Kingdom. It aims to raise US $500 million, targeting high growth and underserved sub-sectors such as healthcare, consumer, transport and logistics, and business services.

Commenting on the launch, Yasser Bajsair, CEO of Investcorp Saudi Arabia, said: “We are delighted to announce the launch of our Saudi Pre-IPO Growth Vehicle. Saudi Arabia’s economy continues to evolve and remains a key market for Investcorp. The Kingdom’s Vision 2030 and its strong macroeconomic fundamentals, combined with its favorable regulatory environment and strategic privatization mandate makes it an attractive investment hub for creating new business opportunities that contribute to its economic growth. We hope that this Vehicle will further contribute to the Kingdom’s National Transformation Program.”

Walid Majdalani, Head of Private Equity MENA and Southeast Asia at Investcorp said, “At Investcorp, we have established a track record of partnering with leading family-owned businesses and taking them public on the Saudi Exchange (“Tadawul”), making us the only private equity firm to successfully list four businesses on Tadawul. Through this vehicle, we aim to partner with reputable founders and shareholders across strategic sectors to create value and to seek to generate attractive risk-adjusted returns for our clients and stakeholders. We will focus on assisting the companies that we invest in to grow and develop, to become potential candidates for an IPO or some other form of value realization event. This Vehicle is one of several initiatives undertaken by Investcorp to capitalize on and contribute to the major transformation the Kingdom has embarked on to further diversify the economy and increase the share of the private sector participation”.

Investcorp opened its office in Riyadh in 2008, managing deep-rooted and long-standing relationships with its investors in Saudi, and has since then been investing in leading businesses in the Kingdom. To date, Investcorp has made seven investments in Saudi Arabia, operating across diversified sectors such as healthcare, consumer, manufacturing, transport and logistics, and industrial services. The firm has publicly listed four Saudi businesses on Tadawul, generating over $40 billion in potential demands from their respective pre-listing marketing exercises at that time. These listing are: BinDawood Holdings, the largest premium grocery retailer in the GCC; Theeb Rent A Car, the leading car rental and leasing company in Saudi Arabia; Leejam Sports Company, the largest fitness club chain in MENA; and L’azurde, the leading designer and manufacturer of gold jewelry in MENA. Its portfolio companies employ over 23,000 employees across the Kingdom.