Saudi Arabia’s Public Investment Fund (PIF) has signed a non-binding memorandum of understanding with Goldman Sachs Asset Management to act as a strategic anchor investor in new private credit and public equity funds targeting the Gulf Cooperation Council (GCC) region.
The collaboration aims to raise equity capital from international investors, with a significant portion allocated for investments within Saudi Arabia. This initiative seeks to bolster the domestic asset management industry and encourage regional and international managers to expand their presence in the Kingdom.
“This MoU is another element in PIF’s strategy of attracting global capital and expertise from a wide range of investors to the region while facilitating knowledge transfer and capacity-building within Saudi Arabia,” said Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF.
“We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients,” noted Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs.
The private credit strategy will focus on senior and junior loans to companies domiciled in the GCC or those conducting substantial business within the region. The public equity strategies will target investments in publicly listed companies either trading on the Saudi exchange or having significant business connections to Saudi Arabia.
Goldman Sachs has been expanding its presence in Saudi Arabia, having recently opened a new office in Riyadh. The firm plans to further extend its local footprint as part of this partnership.
The MoU is subject to regulatory and internal approvals.
