Artal Capital announces first close of Artal Growth Opportunities Fund

Artal Capital announces the successful first closing of its Artal Growth Opportunities Fund. This marks a significant milestone for the newly established fund, which aims to support high-growth, technology-enabled companies in Saudi Arabia and the GCC region. The Artal Growth Opportunities Fund is backed by the General Partner’s commitment and Jada Fund of Funds as cornerstone investors alongside other institutional investors, family offices and high net worth individuals.

Commenting on the Fund’s launch, Rayan Alrasheed, Chief Executive Officer of Artal Capital, said: “We are thrilled to announce the first close of the Artal Capital Growth Opportunities Fund. This milestone underscores the confidence that investors have placed in our strategy and the need for Growth Equity Investments. With the fast paced growth that we are witnessing in the Kingdom, we believe this Fund offers a unique opportunity for investors to gain exposure to high-growth companies and we look forward to playing a positive role in growing the Saudi Private Equity and Growth Capital ecosystem.”

The Artal Growth Opportunities Fund, regulated by the Capital Market Authority of Saudi Arabia, is a closed-ended private equity fund focusing on technology-enabled growth capital investments. By leveraging local insights, global expertise and with a focus on value creation, the fund aims to actively engage with portfolio companies to accelerate their growth, drive profitability and generate targeted returns.

Wassim Moukahhal, Head of Alternative Investments at Artal Capital, added, “With the significant evolution that has taken place in the start-up ecosystem the past few years, our investment strategy is well positioned to bridge the gap between venture capital and private equity, providing growth capital to companies at a critical stage of their development. The fund’s focus on the underlying sector dynamics, reflects our belief in the transformative potential of technology across the various target industries.”

With a target fund size of SAR 500 million, the Artal Growth Opportunities Fund is set to invest in 8 to 10 companies, with an average ticket size of USD 10-20 million per company. Notably, Artal Capital has already successfully closed its first investment in FlyAkeed and is in the advanced stages of closing a second transaction in Q2 2024. Additionally, the Fund boasts a healthy pipeline of potential investments, further demonstrating its robust strategy and the promising outlook of the targeted sectors.