Jada Fund of Funds, a company established by the Public Investment Fund (PIF), has launched a new report titled “Beyond Capital: The Saudi Value Creation Story”. The report, created in collaboration with INSEAD, shares insights on how Private Equity (PE) and Venture Capital (VC) firms are shaping the next generation of Saudi champions by moving beyond simply providing capital to delivering transformative operational expertise.
Key Insights from the Report
The report provides a comprehensive overview of the maturing Saudi private capital ecosystem:
- Value Creation is the New Standard: The report argues that for investors in Saudi Arabia, “value creation”—the deliberate actions taken to improve a company’s performance and operations—is no longer optional; it’s the new investment standard.
- A Unique Saudi Model: Unlike Western markets that historically focused on financial engineering and leverage, the MENA region’s model is less about leverage and more about leadership, strategic guidance, and ecosystem building.
- Eight Core Levers: The report identifies eight primary levers of value creation used by PE and VC firms: Revenue Growth, Margin Expansion, Strategic Positioning, Capital Efficiency, Governance and Transparency, Talent and Team Development, Exit Planning, and Digital Enablement.
- Vision 2030’s Impact: The Kingdom’s Vision 2030 has accelerated the need for sophisticated value creation, as new industries are built and existing ones are transformed.
Beyond Capital: A Partnership Approach
The report emphasizes that in Saudi Arabia, where many businesses are family-owned or founder-led, outside investment is less about funding and more about finding a true partner. Value creation in this context involves introducing governance structures, improving performance, and unlocking new opportunities while preserving legacy and control.
“What makes Saudi Arabia’s investment landscape distinctive is not just the availability of growth capital, but how that capital is applied,” said Sulaiman Alkhushi, Chief Strategy and Business Development Officer at Jada Fund of Funds. “Our family businesses, startups, and growth-stage companies require partners who understand regional nuances while bringing global best practices”.
Shaping the Next Generation of Saudi Champions
The report draws on insights from senior executives at leading PE and VC firms in the region, including Investcorp, Shorooq Partners, and Vision Ventures, to provide real-world examples of how these value creation levers are being applied in the Saudi market. It concludes that mastering the art of value creation is not just about producing returns, but about building institutions that endure.
Read the report: here
