The Public Investment Fund partners with Goldman Sachs Asset Management to launch new investment funds targeting Saudi Arabia and Gulf Cooperation Council (GCC) countries.
RIYADH, Saudi Arabia — The Public Investment Fund (PIF) and Goldman Sachs Asset Management have signed a non-binding memorandum of understanding (MoU) to collaborate on investment initiatives across Saudi Arabia and the broader Gulf Cooperation Council (GCC) region.
Under this MoU, PIF will serve as a strategic anchor investor for new private credit and public equity strategies. These investment funds aim to attract equity capital from international investors, with a substantial portion allocated for investments within Saudi Arabia.
The partnership is designed to strengthen the domestic asset management industry and encourage both regional and international managers to expand their presence in the Kingdom. This aligns with PIF’s broader efforts to diversify the Saudi economy and enhance local capital markets.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, commented: “PIF’s collaboration with Goldman Sachs Asset Management demonstrates our continued efforts to build new partnerships with a diverse range of leading international financial institutions, enhancing local markets.”
Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs, added: “We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients.”
The private credit strategy will focus on directly originated senior and junior loans to companies domiciled in the GCC or those conducting significant business within the region. The public equity strategies will target investments in publicly listed companies either on the Saudi exchange or with substantial connections to Saudi Arabia.
This collaboration is expected to facilitate knowledge-sharing, thereby promoting the growth of Saudi Arabia’s asset management sector. By leveraging PIF’s institutional strength and Goldman Sachs Asset Management’s extensive experience, the partnership aims to position Saudi Arabia as a hub for global investment.
Goldman Sachs has been expanding its presence in Saudi Arabia, recently announcing the opening of a new office in Riyadh. The firm plans to further explore expanding its local footprint as part of this partnership.
The MoU is subject to the satisfaction of certain required conditions, including obtaining all necessary regulatory and internal approvals.
Source: Public Investment Fund (PIF), Saudi Arabia
