Jada Fund of Funds, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), has made its first investment in private credit with a commitment to the United Arab Emirates-based Ruya Partners’ inaugural fund.
Following Jada’s commitment, Ruya Private Capital I secured its first close at $125 million, i.e. half of its $250 million target, which is expected to be achieved by the first quarter of 2024, according to a company statement on Tuesday.
Jada had, earlier this year, expanded its investment coverage to private credit. “This deal [with Ruya] is only the beginning of Jada’s support for the local private credit market… 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,” said Bandr Alhomaly, CEO of Jada Fund of Funds.
As of November 2023, Jada has 33 funds under management, with 2.9 billion Saudi Riyal committed. Among other investors that Jada has backed include Abu Dhabi-headquartered Shorooq Partners.
Ruya Private Capital I aims to provide bespoke debt financings to mid-market companies in the Middle East and North Africa (MENA) region for various needs, such as growth capital, capital expenditures, M&A transactions and leveraged buyouts. Through the fund, Ruya Partners looks to foster the growth of SMEs and fuel the region’s economic diversification.
Ruya Partners had, last week, announced a $25 million private credit investment in UAE-based fitness operator GymNation to support its expansion to Saudi Arabia. The investment helped GymNation’s management lead a buyout of all equity owned by its investor JD Gyms.
Saudi Venture Capital (SVC), a government investment company, is also among the limited partners of Ruya’s fund.