Afaq Capital has acquired a full venture capital portfolio from Cotyledon for Management Consultancy, in what is being described as the region’s first complete exit of its kind. The transaction was licensed by Saudi Arabia’s Capital Market Authority.
The deal is seen as a turning point for the venture capital ecosystem in the Kingdom, offering a proof point for viable liquidity events and exit strategies in the local market. It is expected to support capital recycling, draw new investor commitments, and strengthen the pipeline for early-stage funding.
Hassan Ikram, founder and CEO of Cotyledon, said the transaction demonstrates that liquidity events are now a practical reality in the region’s VC market. The portfolio composition and valuation details have not been disclosed.
The move aligns with broader efforts under Saudi Arabia’s Vision 2030 programme to diversify the economy and expand private sector participation, including through increased activity in venture funding and technology investments. According to MAGNiTT data, Saudi Arabia ranked second in the MENA region in venture capital funding in 2024, trailing only the UAE.
Afaq Capital’s acquisition could offer a template for future secondary transactions and institutional participation in the Saudi venture space, where exits have historically been limited.
