New Delhi, June 18 -- SIDF Investment Company, an investment platform owned by the Saudi Industrial Development Fund, has made its first international limited partner-style investment in a private equity fund to drive industrial investments in the country.
The Riyadh-headquartered firm, which has a portfolio of direct and fund-of-fund investments, has committed capital to Investindustrial, a UK-based private equity firm, in a strategic partnership to accelerate industrial capital flow for mid-sized companies in Saudi Arabia.
"By partnering with Investindustrial, we're bridging global reach, operational depth, and industry specialisation into our ecosystem, positioning Saudi Arabia as the platform for regional and international manufacturing growth," said Fahad Al-Naeem, CEO of SIDF Investment Company. "SIC will utilise its local market expertise to pave the way for global manufacturers to establish a footprint in Saudi Arabia and connect with international supply chains, benefiting from the Kingdom's competitive position," said Naeem.
Investindustrial has raised more than €17 billion in the last 35 years. It recently marked the final close of its eighth flagship vehicle, Fund VIII, after raising €4 billion. While 53% of the capital came from European LPs and 23% from North American LPs, the remaining 20% was raised from the rest of the world, including the Middle East.
InvestIndustrial Fund VIII aims to back 12 mid-sized companies and has already deployed capital in four companies. It partners with family-owned businesses and corporations that operate niche, globally relevant brands with significant growth potential. It has so far invested in over 300 companies, supported by a team of more than 200 professionals across eight global offices. Currently, its portfolio includes 29 companies generating total revenue of over €18 billion.
Investindustrial has offices in eight cities, including London, Madrid, Paris, Lugano, Luxembourg, New York, Shanghai, and Abu Dhabi.
"This partnership with SIC marks an important milestone in supporting the Kingdom's economic diversification and industrial development. We are excited for this partnership and look forward to working hand-in-hand with SIC to drive the sustainable growth of Saudi Arabia's industrial sector," said Andrea C. Bonomi, Chairman, Investindustrial.
SIC was established in December 2022 by SIDF to facilitate private investment in industry, energy, mining, and logistics projects. Its portfolio includes manpower logistics services provider Masic Logistics, two private credit funds and two private equity funds. It targets industrial and industrial-enabling sectors, including aerospace, medical devices, defense, automotive, food processing, maritime, renewable energy, metals, pharmaceuticals, and medical devices.
In March this year, the SIC backed Ashmore Investment Saudi Arabia, an industrial investment fund with a target corpus of $106 million. In May, the SIC, in partnership with Saudi fintech crowdfunding platform Lendo, launched an investment platform of $56 million to provide sustainable working capital financing for small and medium-sized industrial enterprises across Saudi Arabia
Meanwhile, SIC's parent company-the Saudi Industrial Development Fund-was established in 1974 with an initial capital of SAR500 million ($133 million) to offer financial support to the industrial sector in Saudi Arabia. Over the last five decades, SIDF has gradually increased its capital to over SAR105 billion ($28 billion).
Published by HT Digital Content Services with permission from VC Circle.