Key Takeaways
- • Goldman Sachs, HSBC and Fortress Investment Group are participating in a $150m private credit financing for United Saudi Company, according to Bloomberg.
- • The financing involves regional managers Ruya Partners and Amwal Capital Partners and marks Fortress's first private credit investment in Saudi Arabia.
- • The deal is among the first major international private credit transactions in the kingdom since the outbreak of the US-Iran conflict in February, which has tightened regional liquidity.
- • Saudi Arabia is turning to private capital to support its economic diversification as bank lending tightens, with strong demand from small and medium-sized businesses.
- • Janus Henderson recently raised almost $200m for its regional private credit strategy, and Ruya Partners is targeting $400m for a dedicated fund.
Summary
Goldman Sachs, HSBC and Fortress Investment Group are participating in a $150m private credit financing for United Saudi Company, one of Saudi Arabia's largest recent transactions involving international alternative lenders, according to Bloomberg. The financing reportedly involves regional investment managers Ruya Partners and Amwal Capital Partners. For Fortress, the deal represents its first private credit investment in the kingdom.
The transaction is among the first major international private credit deals in Saudi Arabia since the outbreak of the US-Iran conflict in February, a period that has intensified liquidity pressures across the region. Saudi Arabia is increasingly turning to private capital to support its economic diversification programme as tighter bank liquidity and geopolitical instability constrain traditional lending. Demand is particularly strong among small and medium-sized businesses, while asset-backed lending and other specialist financing structures are attracting international investors, including Apollo Global Management, Citigroup and Jefferies.
The deal also comes amid growing institutional interest in Middle Eastern private credit. Janus Henderson recently raised almost $200m for its regional private credit strategy, while Ruya Partners, backed by Mubadala and the Public Investment Fund (PIF), is targeting $400m for a dedicated fund.
The transaction is among the first major international private credit deals in Saudi Arabia since the outbreak of the US-Iran conflict in February, a period that has intensified liquidity pressures across the region. Saudi Arabia is increasingly turning to private capital to support its economic diversification programme as tighter bank liquidity and geopolitical instability constrain traditional lending. Demand is particularly strong among small and medium-sized businesses, while asset-backed lending and other specialist financing structures are attracting international investors, including Apollo Global Management, Citigroup and Jefferies.
The deal also comes amid growing institutional interest in Middle Eastern private credit. Janus Henderson recently raised almost $200m for its regional private credit strategy, while Ruya Partners, backed by Mubadala and the Public Investment Fund (PIF), is targeting $400m for a dedicated fund.
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