News

22nd April 2025

Pedersen & Partners and CMS Saudi Arabia co-hosted the 1st Saudi Arabia Private Markets Investment Breakfast.

The event gathered a diverse group of private equity, venture capital, family office, and institutional investment professionals to examine emerging trends, structural shifts, and capital allocation priorities in the region’s private markets.

The panel discussion was moderated by Michael Al-Nassir, Equity Partner, Head of META & Head of Private Equity Practice APMEA at Pedersen & Partners and Rizwan Osman, Head of Corporate/M&A at CMS Saudi Arabia.

Panelists included:

• Waleed A. Alballaa – General Partner, Sukna Ventures
• Turki Aljoaib – Managing Partner, Rua Growth Fund
• Wassim Moukahhal – Head of Alternatives, Artal Capital
• Orhan Osmansoy – Managing Partner, TVM Capital Healthcare
• Markus Solibieda – Chief Investment Officer, Dussur
• Mohamed Wahby – Managing Director Private Equity and Real Estate, Malaz Capital

Key takeaways from the discussion:

1. Market Environment & Sovereignty

• Tailwinds & Government Support: Ongoing macro tailwinds and the Public Investment Fund’s role as seed/anchor investor continue to underpin deal flow.
• Sovereignty & Diversification: A clear priority on non-oil revenue, local manufacturing, supply-chain independence and protecting home-grown champions.
• M&A Caution: Tariff impacts remain unpredictable, so dealmakers are pacing M&A to fully assess market shifts.
• Legal and Regulatory Landscape: The legislature and regulators are listening to the market and developing laws and regulations accordingly (e.g. enhanced corporate governance under the Companies Law).

2. Capital Sources & LP Dynamics

• Government vs. Private Backers: While the state kick-started many GPs, the next phase requires deeper corporate and family-office participation.
• Family Offices Shifting Inward: Gulf family offices—long allocators to U.S. and European markets—are now upping MENA allocations and exploring PE/VC.
• LP Sophistication & Co-Investments: Regional LPs have built in-house deal teams, focus on DPI (realised returns/liquidity), and often co-invest alongside funds (sometimes 5–10× fund commitments).
• Big-Ticket vs. Core Market: Global mega-funds are active but rare; small- and mid-cap remains the backbone.

3. Investment Strategies & Structures

• Specialised Theses & Track Records: GPs must articulate a clear, niche mandate and bring teams with prior-performance pedigrees.
• Private Credit on the Rise: Private credit solutions are becoming a standard layer in transaction financing; traditional lenders need to adapt to remain competitive.
• Collateral & Security: Creative structures are emerging to meet regional security requirements, despite limited availability of hard collateral.
• Preferred Jurisdictions: UAE’s ADGM and DIFC remain preferred fund domiciles; evolving Saudi company laws are gaining traction.

4. Sectoral Opportunities

• Tech & FinTech Leap-Frogging: Enterprise SaaS, generative AI, and FinTech (e.g., “rent now, pay later” models) are attracting significant VC interest, including from bank-affiliated VC arms.
• Deep Tech & Life Sciences: Riyadh is fostering deep-tech startups; biotech remains early-stage. Healthcare services continue to be a stable investment segment.
• Niche Healthcare Platforms: Investors are targeting specialty clinics and aggregated facilities rather than capital-intensive hospital chains.
• Education & Other Verticals: “Roll-up” strategies in education, particularly mid-sized schools, mirror those in healthcare.

5. Talent & Ecosystem Development

• Human Capital as Value Driver: Leadership quality is as important as capital—retention strategies often involve sophisticated equity and bonus structures.
• Hands-On Growth Capital: Growth-stage investors are closely involved in strategy, governance, and scaling to drive premium exits.
• Building the Full-Cycle Community: Stakeholders across VC, growth equity, PE, and credit benefit from shared forums to co-invest and exchange insights.
• Broader Enablers: Robust legal frameworks, transparency, and leading financial centres are essential enablers of private-market growth.

Pedersen & Partners CMS Saudi Arabia thanks the speakers and attendees for the engaging discussion and valuable insights.