Brookfield Corp on Monday announced the first close of Public Investment Fund (PIF)-anchored Brookfield Middle East Partners (BMEP), raising about $2 billion from a group of strategic anchor investors comprising PIF and other global and regional institutional partners.
BMEP leverages Brookfield’s expertise through its offices in Riyadh and across its broader global network to pursue buyouts, minority growth equity and other investment opportunities across a range of sectors including financial, business and consumer services, industrials, technology and healthcare.
Investments in Middle East
In a statement, the investment firm said capital from the fund will be allocated to investments in the Middle East with a focus on Gulf Cooperation Council (GCC) in high-growth markets.
The fund targets allocating 50% of its investments in Saudi Arabia, as PIF continues to attract capital inflow.
PIF is an anchor investor in the newly launched fund, as part of its strategy to maximize returns and deliver long-term value through global partnerships.
PIF partnerships are key to leveraging investment opportunities and fostering economic development, while enabling the development of local talent and capabilities.
The investment marks another step in PIF’s strategy to further deepen and diversify the Saudi capital market by partnering with global investors on commercially attractive opportunities, empowering financial institutions, broadening financing options for local businesses and introducing new products.
Opportunities in Saudi Markets
“PIF continues to build upon Saudi Arabia’s position as a global hub for investments, through partnering with international industry leaders to drive product innovation and ensure further access to local opportunities,” Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said.
“Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region. It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem,” he added.
For his part, Bruce Flatt, CEO of Brookfield Corporation, said: “We are grateful for the collaboration with PIF and our other strategic anchor partners, reflecting the global confidence and strong demand for private equity opportunities in Saudi Arabia and the region.”
He noted that Brookfield has been active in the Middle East for nearly three decades. “We bring deep local investment expertise, local networks and an owner-operator approach to transforming high-quality businesses,” Flatt said.
“We see a compelling opportunity to partner with businesses across the region and position them for long-term growth,” he added.
$500 Billion
Brookfield is committing $500 million to the fund consistent with its longstanding approach of ensuring alignment with its partners, the investment firm said in the statement.
As part of this initiative, Brookfield will make the Brookfield Academy available in Saudi Arabia. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for Brookfield partners’ professionals.
PIF is one of the world’s most impactful investors, with a long-term investment strategy to further drive the economic transformation of Saudi Arabia and deliver sustainable financial returns.
Considered as one of the largest foreign direct investors in the GCC, Brookfield has been directly investing in the region since 2015. It has built a portfolio of over $16 billion of managed assets across private equity, real estate, and infrastructure.
