Saudi Venture Capital (SVC), a state-backed investment firm, is reshaping its $3 billion investment strategy to allocate more money into private credit funds, betting that the asset class will capture a larger share of business in the kingdom.

The firm that primarily functions as a fund of funds plans to allocate half of its total investments to private credit and equity combined. This marks an increase from about one-third of its portfolio allocation last year.

What is the rationale behind this change?

According to CEO Nabeel Koshak, this portfolio re-designing strategy is based on the “evolution and growth of the ecosystem”. A key driver is the nascent stage of private credit in Saudi Arabia. Koshak noted that SVC intends to raise awareness about how private credit complements exist

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