Brookfield, on July 27, announced the first close of the Public Investment Fund (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. Through the round, the Canadian alternative investment giant raised approximately USD 2 billion from a group of strategic anchor investors comprising the PIF and other global and regional institutional partners.
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.
As per the venture, capital from the fund will be allocated to investments in the Middle East, with a focus on the Gulf Cooperation Council (GCC) in high-growth markets. The fund has a goal of allocating 50% of its investments in Saudi Arabia, as PIF continues to attract capital inflow.
“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 Saudi sovereign wealth fund stated.
“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 further.
“Brookfield is committing USD 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,” the Canadian firm said.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said, “PIF 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.”
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.”
Through the BMEP, PIF further consolidates its position as one of the world’s most impactful investors, with a long-term investment strategy to further drive the economic transformation of Saudi Arabia and deliver sustainable financial returns.
Considered as one of the largest foreign direct investors in the GCC, Brookfield has been pumping significant capital into the region since 2015. It has built a portfolio of over USD 16 billion of managed assets across private equity, real estate and infrastructure in this part of the world.