• PIF-owned Jada Fund of Funds is increasing private credit exposure, backing Stride Ventures to deploy USD 200M into Saudi Arabia.
• The move comes as US private credit faces valuation scrutiny, while Gulf markets remain early-stage and underpenetrated.
• Jada has deployed nearly USD 600M since 2018 to build Saudi Arabia’s private capital ecosystem and support SMEs.

Jada Fund of Funds 

Jada Fund of Funds, a subsidiary of the Public Investment Fund (PIF), plans to increase allocations to the asset class. The strategy reflects growing Gulf appetite for alternative lending. It also signals confidence in the local market’s long-term potential.

Jada recently signed a partnership with India-based Stride Ventures. The venture debt firm intends to deploy USD 200 million in Saudi Arabia over the next two years. The capital will target companies operating within the Kingdom. The goal is to expand access to non-bank financing.

Private Credit

The move comes at a sensitive time globally. In the United States, private credit managers are facing closer scrutiny. Investors are questioning valuations and underwriting standards. Market nerves intensified after Blue Owl Capital Inc. limited withdrawals from one of its funds. The decision rattled shares of listed firms exposed to private credit.

Gulf investors see a different picture. Regional executives argue that private credit in the Middle East is still nascent. The market remains small compared to the US and Europe. That limits systemic risk for now. Growth, rather than excess, defines the current phase.

Jada was launched in 2018 with about USD 1 billion in capital from PIF. Its mandate is to develop Saudi Arabia’s private capital ecosystem. The platform invests in venture capital, private equity, and increasingly private credit. To date, it has deployed close to USD 600 million across roughly 50 funds.

Private credit is becoming more strategic as bank lending growth slows. Small and medium-sized enterprises need flexible funding options. Alternative lenders can help bridge financing gaps. That aligns with Saudi Arabia’s broader economic diversification push.

The trend extends beyond the Kingdom. The Qatar Investment Authority is backing a private credit firm launched by former Goldman Sachs partners. In the UAE, Mubadala Investment Co. has also built significant exposure to the asset class.