Public Investment Fund, Riyadh, Saudi Arabia, signed a nonbinding memorandum of understanding to act as a strategic anchor investor for a new private equity fund run by Brookfield Asset Management.
The $925 billion sovereign wealth fund, known as PIF, said in a news release that a new platform, Brookfield Middle East Partners, will aim to serve as Brookfield’s new private equity vehicle for investments in Saudi Arabia-based businesses, as well as those based in the wider region.
The memorandum was signed at the eighth edition of the Future Investment Initiative conference in Riyadh.
PIF’s investment amount was not disclosed.
BMEP is targeting $2 billion in fundraising from a variety of investors, and it will target buyouts, structured solutions and other investment opportunities across sectors, including industrials, business and consumer services, technology and healthcare. At least 50% of the capital raised will be allocated to Saudi Arabia-based investments and to leading international firms that are looking expand in the local market.
PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets,” said Yazeed A. Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, in the news release. “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.”
Brookfield will also expand its Riyadh office and make Brookfield Academy — which provides interactive learning opportunities for the firm’s partners — available locally.
We are honored to partner with PIF on this landmark private equity fund,” said Bruce Flatt, CEO of Brookfield Asset Management, in the release. “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, which has a total of about $1 trillion in assets under management, has been active in the region since 1997 and has a portfolio of more than $12 billion of managed assets across private equity, real estate and infrastructure.
The MOU is subject to certain conditions, including regulatory and internal approvals. Spokespeople for PIF could not immediately be reached for comment.
