PIF ‘major investor’ in Brookfield’s new PE fund, $2B raised

Brookfield announced today the first close of PIF-anchored Brookfield Middle East Partners (BMEP), a new private equity fund dedicated to investing in businesses based in Saudi Arabia and the wider Middle East region.

The private equity fund raised approximately $2 billion from a group of strategic anchor investors comprising PIF and other global and regional institutional partners, it said in a statement.

It explained that Brookfield is committing $500 million to the fund consistent with its longstanding approach of ensuring alignment with its partners. “As part of this initiative, Brookfield will make the Brookfield Academy available in Saudi Arabia. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for Brookfield partners’ professionals,” it said.

According to the statement, BMEP leverages Brookfield’s expertise through its offices in Riyadh and across its broader global network to pursue buyouts, minority growth equity and other investment opportunities across a range of sectors including financial, business and consumer services, industrials, technology and healthcare.

Capital from the fund will be allocated to investments in the Middle East with a focus on GCC in high-growth markets. The fund targets allocating 50% of its investments in Saudi Arabia, as PIF continues to attract capital inflow.

PIF’s investment in the fund aligns with its strategy to maximize returns and deliver long-term value through global partnerships, said the fund, adding that PIF partnerships are key to leveraging investment opportunities and fostering economic development, while enabling the development of local talent and capabilities.

The investment marks another step in PIF’s strategy to further deepen and diversify the Saudi capital market by partnering with global investors on commercially attractive opportunities, empowering financial institutions, broadening financing options for local businesses and introducing new products, it added.