Saudi Arabia’s sovereign wealth fund will be the anchor investor in Goldman Sachs Asset Management’s specific new funds focused on the kingdom and other Gulf Cooperation Council countries, the companies said on Monday.
The tie-up comes as the $925 billion Public Investment Fund (PIF) of Saudi Arabia looks to strengthen the domestic asset management industry by deepening its relationships with international partners.
The PIF is central to Crown Prince Mohammed bin Salman’s plans to transform the kingdom’s economy by building new industries and investing in massive infrastructure development projects that the government refers to as giga-projects.
The two sides signed a non-binding memorandum of understanding, subject to regulatory approvals, for the new funds that will focus on private credit and public equity strategies.
The funds will seek to generate equity capital from global investors, allocating a substantial portion for investments in Saudi Arabia.
On the private credit front, the funds will focus on lending to companies based in the Gulf or those conducting most of their business with them.
The funds will invest in companies that are either listed on the Saudi exchange or have business ties to the kingdom.
Wall Street firms, including Goldman Sachs, have been increasingly strengthening their operations in Saudi Arabia. It secured a license last year to set up its regional headquarters in capital Riyadh.
World’s largest asset manager BlackRock last year also tied up with PIF to launch a new investment platform in the kingdom.
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