Saudi Arabia’s Public Investment Fund (PIF) and Goldman Sachs Asset Management have inked a non-binding Memorandum of Understanding (MoU) for PIF to serve as a strategic anchor investor for new private credit and public equity strategies in Saudi Arabia and across the GCC region.
In line with Crown Prince Mohammed bin Salman’s Vision 2030, this initiative supports the Kingdom’s strategic efforts to develop a more diversified and sustainable economy, less reliant on oil revenues.
The new investment funds will seek to raise equity capital from international investors, with significant capital allocated for investments in Saudi Arabia.
The MoU is expected to enhance the domestic asset management industry and empower regional and international managers to expand their footprint in Saudi Arabia. Asset management is part of PIF’s commitment to diversifying the Saudi economy and enhancing its local capital markets.
Yazeed A. Al-Humied Deputy Governor and Head of MENA Investments – PIF
“PIF’s collaboration with Goldman Sachs Asset Management demonstrates our continued efforts to build new partnerships with a diverse range of leading international financial institutions, enhancing local markets. 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.”
Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs, stated that, “We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients. Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC’s rapid economic transformation. We are excited to see this partnership expand and to continue building our presence in Saudi Arabia.”
Under the terms of the MoU, the private credit strategy will target directly originated senior and junior loans and debt to companies that are domiciled in the GCC region or do most of their business with it. The public equity strategies will focus on investments in publicly listed equity securities of companies that are either listed on the Saudi exchange or have businesses connected to Saudi Arabia.
The partnership aims to facilitate knowledge-sharing to drive growth in Saudi asset management sector. By harnessing PIF’s institutional strength and Goldman Sachs Asset Management’s experience investing across public and private markets, the collaboration supports PIF’s goal to cement Saudi Arabia’s position as a global hub for investment.
Goldman Sachs has been strengthening its presence in Saudi Arabia, with the recent opening of a new office in Riyadh. The company will explore expanding its local footprint as part of the partnership.
The MoU remains subject to the satisfaction of certain required conditions including obtaining all necessary regulatory and internal approvals, among other milestones.
