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New fund will target 50% of its investments to be made in Saudi Arabia
Brookfield to also expand Riyadh office and support local talent development
RIYADH – PIF and Brookfield Asset Management Ltd. today signed a non-binding memorandum of understanding (MoU) for PIF to act as a strategic anchor investor for Brookfield Middle East Partners (BMEP), a new platform which aims to serve as Brookfield’s new private equity vehicle for investments in businesses based in Saudi Arabia and the wider region. The MoU was signed at the FII 8th Edition in Riyadh.
BMEP will target $2 billion from a variety of investors, and intends to target buyouts, structured solutions and other investment opportunities across a range of strategic sectors including industrials, business and consumer services, technology and healthcare. At least 50% of the capital will be allocated to investments in Saudi Arabia and to leading international companies looking to expand in the local market, unlocking foreign direct investment into Saudi Arabia.
This partnership aims to leverage the relative strengths of PIF and Brookfield to further local private equity investment opportunities and foster economic development in Saudi Arabia, and further advances Saudi Arabia’s strategy to position the nation as a leading hub for global investment and economic growth.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets. This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region, while facilitating knowledge transfer and capacity-building within Saudi Arabia.”
Bruce Flatt, CEO of Brookfield Asset Management, said: “We are honored to partner with PIF on this landmark private equity fund. Saudi Arabia is core to the region’s economic transformation, and we look forward to contributing to its growth by investing at scale in market-leading companies that will benefit from our deep operating capabilities. With our expanding presence in Riyadh, we are excited to bring our global expertise to participate in the development of the local private markets ecosystem.”
Brookfield will also expand its office in Riyadh and make Brookfield Academy available locally. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for Brookfield partners’ professionals. This will facilitate knowledge-sharing and talent development, supporting PIF’s goals of developing local investment capabilities.
PIF is playing a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as driving global economies and shaping the future of industries. Locally since 2017, PIF has created 95 new companies and globally it has created over 1.1 million direct and indirect jobs.
Brookfield is one of the largest foreign direct investors in the GCC. Active in the region since 1997, and directly investing since 2015, Brookfield has built a portfolio of over $12 billion of managed assets across private equity, real estate and infrastructure. With a substantial local presence, Brookfield has taken a differentiated approach to building its business in the region, focusing on building long-term partnerships with leading local institutions.
Today’s non-binding MoU is subject to satisfying certain necessary conditions including obtaining all necessary regulatory and internal approvals, and fulfilling specified milestones.
About PIF
PIF is the investment engine driving economic transformation for Saudi Arabia and the world. With an ambitious program to deliver Vision 2030, PIF invests in projects, companies and partners to diversify the Saudi economy, stimulate growth in every major sector, and create new opportunities for investment and employment.
And as a global investor and catalyst of change, PIF actively partners with the most pioneering organizations across the world to accelerate their growth, and transfer the technology and knowledge needed to build industry ecosystems of the future.
Since 2017, PIF has established 95 companies and injects at least SAR 150 billion into the local economy each year. Through strategic investments and partnerships across the Saudi public and private sector, PIF is driving the transition to a more sustainable economy, and laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia.
For more information, visit the website at www.pif.gov.sa
Rupert Trefgarne: rtrefgarne@pif.gov.sa / +966 546 0057 33
About Brookfield
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.
For more information, please visit our website at www.bam.brookfield.com