UAE-based leading asset management and investment banking platform, SHUAA Capital has launched SHUAA Venture Partners, a $250 million Shariah fund that focuses on venture debt investments.
The fund is the largest venture debt fund in the GCC and has been established to support the growth of regional technology and technology-enabled leaders that are seeking alternative sources of funding without significantly diluting their shareholding.
“SHUAA Venture Partners will provide alternative capital solutions to high growth companies across the GCC. We aim to support the growth of businesses, create jobs, lead further developments in innovation and technology, support economic diversification, and guide founders towards realizing their vision. Our investors have the opportunity to diversify into a new asset class in technology, with a shorter investment horizon, frequent distributions, and attractive financial returns.”
According to the statement, “The strategy was developed sharing the vision of the GCC’s regional goals of economic diversification and growth of the new economy.”
Early-stage deals and investors have dominated growing company investments across the GCC, with few able to assist organizations throughout their growth cycle. “As a result, several growth-stage companies have limited access to larger pools of capital and non-equity financial solutions; a gap which needs to be filled for new ventures to succeed,” as per the company.
SHUAA is the leading debt franchise in the region, with $545 million deployed in private debt transactions and $3 billion structured across multiple sectors over the last 11 years including technology.
Recently, SHUAA Capital has completed a strategic investment in UAE-based fintech, Souqalmal in order to support the growth plans.