Brookfield has secured approximately $2bn for the first close of a new Middle East-focused private equity fund anchored by Saudi Arabia’s Public Investment Fund (PIF).
The fund attracted commitments from a group of strategic anchor investors led by PIF alongside other global and regional institutional partners.
The fund will pursue buyouts, minority growth equity investments and other opportunities across sectors including financial services, business services, consumer industries, technology, healthcare and industrials.
The capital will be deployed throughout the Middle East, with a particular focus on the GCC markets.
The asset manager also announced the launch of Brookfield Middle East Partners (BMEP), a private equity vehicle dedicated to investing in businesses across Saudi Arabia and the broader Middle East.
BMEP plans to allocate around 50% of its investments to Saudi Arabia, reflecting the kingdom’s growing prominence as a destination for private capital and foreign investment.
PIF’s role as an anchor investor aligns with its broader strategy of attracting international investment into Saudi Arabia, expanding financing options for local businesses and supporting the development of domestic capital markets.
The sovereign wealth fund has increasingly partnered with global asset managers to establish investment platforms aimed at deepening market liquidity and creating new investment products.
‘Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region,’ said Yazeed Al-Humied, PIF’s deputy governor and head of MENA investments.
He added that the collaboration would help accelerate deal flow while bringing global expertise to the local capital market ecosystem.
Brookfield chief executive Bruce Flatt said the first close reflected strong investor appetite for private equity opportunities in Saudi Arabia and the wider Middle East.
‘We see a compelling opportunity to partner with businesses across the region and position them for long-term growth,’ Flatt said, citing Brookfield’s longstanding presence in the Middle East and its experience investing in and operating businesses.
Brookfield will commit $500m of its own capital to the fund, a move designed to align its interests with those of investors.
As part of the initiative, Brookfield will also introduce its Brookfield Academy training programme in Saudi Arabia to support the development of local investment professionals and talent.
The launch builds on Brookfield’s expanding footprint in the region. The firm, which has been investing in the Middle East for nearly three decades and directly in the GCC since 2015, manages more than $16bn of assets across private equity, infrastructure and real estate in the region.
