Brookfield, one of the world’s largest alternative investment management companies, has announced that Saudi Arabia’s sovereign wealth fund PIF has anchored the first close of its new private equity fund – Brookfield Middle East Partners (BMEP) – helping raise about $2 billion alongside other institutional investors.
The BMEP is dedicated to investing in businesses based in Saudi Arabia and the wider Middle East region.
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, it stated.
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.
PIF is an anchor investor in the newly launched fund, as part of its strategy to maximise returns and deliver long-term value through global partnerships. 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.
Yazeed A. Al-Humied, Deputy Governor and Head of Mena Investments at PIF, said the wealth fund continues to build upon Saudi Arabia’s position as a global hub for investments, through partnering with international industry leaders to drive product innovation and ensure further access to local opportunities.
“Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region. It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem,” he stated.
Bruce Flatt, CEO of Brookfield Corporation, said: “We are grateful for the collaboration with PIF and our other strategic anchor partners, reflecting the global confidence and strong demand for private equity opportunities in Saudi Arabia and the region. Brookfield has been active in the Middle East for nearly three decades, and we bring deep local investment expertise, local networks and an owner-operator approach to transforming high-quality businesses. We see a compelling opportunity to partner with businesses across the region and position them for long-term growth.”
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.
Capital from the fund will be allocated to investments in the Middle East with a focus on Gulf Cooperation Council (GCC) in high-growth markets. The fund targets allocating 50% of its investments in Saudi Arabia, as PIF continues to attract capital inflow.