Saudi Arabia’s public pension fund is joining the kingdom’s sovereign wealth fund in anchoring Brookfield Asset Management’s new regional private equity fund, committing up to $500 million.
Hassana Investment Co., the investment manager of Saudi Arabia’s 1.2 trillion Saudi riyal ($319.3 billion) social security and pension fund General Organization for Social Insurance, Riyadh, signed a memorandum of understanding to explore becoming an anchor investor in the Brookfield Middle East Partners fund, a statement said.
The fund, which is targeting at least $2 billion in assets, will focus on the Middle East and target buyouts, structured solutions and other investment opportunities in sectors including industrials, consumer and business services, technology and healthcare.
The memorandum was signed by CEO Saad bin Abdulmohsen Al-Fadly, and Brookfield AM CEO Bruce Flatt.
"This partnership will enable us to leverage Brookfield’s expertise and robust track record in private equity, allowing us to commit to deploying capital in sectors that are vital to the growth of the Saudi economy,” Al-Fadly said in the statement.
Brookfield is committing $500 million to BMEP, the statement added. On Oct. 30, the $925 billion Public Investment Fund, Riyadh, said it had signed a memorandum with the intention of becoming an anchor investor in the same fund. PIF’s commitment was not disclosed.
Brookfield AM has about $1 trillion in assets under management.