Saudi Arabia’s Public Investment Fund (PIF) is partnering with global investment firm King Street Capital Management to launch a new joint venture aimed at deploying private credit to companies across Saudi Arabia and the wider MENA region. The new entity, led by newly appointed CEO Zaid Al-Mufarih, will provide a much-needed alternative source of capital for mid-sized companies to finance their growth and expansion.
Quick Facts
- Joint venture between PIF and King Street.
- Focus on private credit for MENA companies.
- Aims to support Saudi Vision 2030 goals.
A New Capital Source for the Kingdom
The joint venture is designed to fill a significant gap in the regional financial market. While traditional bank lending and public markets serve some companies, many businesses require more flexible and tailored financing solutions. This new fund will provide private credit directly to these companies, helping them scale operations, fund acquisitions, or undergo strategic transformations.
The initiative directly supports the goals of Saudi Vision 2030 by stimulating private sector growth and diversifying the economy. Abdulmajid Alhagbani, Head of MENA Securities Investments at PIF, stated, “The joint venture will provide alternative and flexible financing solutions to support the growth of the private sector in the Kingdom. This partnership is in line with PIF’s strategy to develop the capabilities of the local asset management industry.”
Global Expertise Meets Local Power
The partnership combines King Street’s deep experience in global credit markets with the PIF’s extensive network and strategic position within the Saudi and regional economy. King Street will manage the joint venture, applying its established investment processes and infrastructure to identify and execute on opportunities.
“We believe that the combination of King Street’s global credit expertise with PIF’s deep understanding of the local market will create a leading platform for private credit in Saudi Arabia and the wider region,” said Brian Higgins, Co-Founder and Managing Partner of King Street.
The venture will be headquartered in Riyadh and led by Zaid Al-Mufarih, a former Goldman Sachs executive with extensive experience in regional finance.
About The Public Investment Fund
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world. As the primary investment arm of Saudi Arabia, it plays a leading role in advancing the country’s economic transformation and diversification under Saudi Vision 2030.
About King Street Capital Management
King Street is a global alternative investment firm founded in 1995. The firm manages capital across a range of credit and equity strategies, with a focus on distressed debt, restructurings, and event-driven opportunities worldwide.
Source: Fintech News Middle East
