EXCLUSIVE: Saudi PIF weighs fresh fundraising options to generate cash from companies, sources say

Saudi Arabia's Public Investment Fund is in the early stages of exploring new fundraising options, according to three people with knowledge of the matter who spoke to Reuters. The move is part of a broader effort by the wealth fund, one of the world's largest sovereign wealth funds with over $900 billion in assets under management, to grow its investments without injecting additional capital of its own. One of the options under consideration is securitizing cash streams from some portfolio companies, two of the sources said. Another source said PIF will examine all opportunities to raise capital, including selling stakes in mature assets and raising funds for younger companies. It was not immediately clear which portfolio companies could pursue securitizations or how large any transaction would be.

The fund has a wide range of options, including trimming stakes in listed assets, selling bonds to international investors, and raising debt from export credit agencies. Reuters reported that a liquidity crunch across Saudi lenders and a lull in stock market listings could push PIF to widen its funding strategy. Valuation gaps in early conversations with investors and disagreements over ultimate control of assets have emerged as obstacles to stake sales, two sources said. A weak Gulf IPO market in 2026, with a drop in valuations discouraging new debuts, has also limited the listing route, three sources said.

PIF has spent almost a decade building companies across real estate, technology and a new airline under Saudi Arabia's Vision 2030 programme to reduce reliance on oil. Recent challenges, including the impact of the Iran war, have increased pressure for its investments to generate returns. When asked for comment, PIF pointed Reuters to its 2026-2030 strategy, which states that the phase is "underpinned by increasingly diversified financial returns, greater private sector and capital markets participation in Saudi Arabia." PIF declined to comment on securitization plans or talks with investors on stake sales, and the Saudi government did not respond to a request for comment. At the end of last year, the fund reported an annualised total shareholder return of 5.8% since 2017, down from 7.2% at the end of 2024.

Reuters has also reported that PIF is considering selling a minority stake in UK soccer team Newcastle United, and that PIF-owned developer ROSHN is seeking investors for a key project. Many PIF deals involve other state-linked entities. This month, PIF completed a 49% stake sale in AI firm Humain to state oil giant Aramco, which will inject $2.6 billion into the company this year. PIF directly and indirectly holds 16% of Aramco and retains control of Humain, which is also pursuing external funding. Global SWF said in a report that the Humain deal does not imply an immediate liquidity problem for PIF, but that the scale of its domestic portfolio means continued expansion cannot depend indefinitely on new PIF equity. The new strategy requires more portfolio companies to generate cash and support their own debt, the research firm said.