– Shorooq Partners has announced the first close of its $100 million second private credit fund, aiming to drive innovation and growth in the MENA tech ecosystem, in collaboration with IMM Investment Global (IMMG).

– Notable investment from the fully deployed first credit fund include Pure Harvest, a smart farm in desert environments, and Tamara, Saudi Arabia’s first Buy Now, Pay Later (BNPL) platform and fintech unicorn, highlighting the transformative impact of non-dilutive financing.

– The MENA private credit market has seen significant growth, with a 12% compound annual growth rate (CAGR) over the past five years, driven by the tech ecosystem and demand for alternative financing, presenting substantial opportunities for expansion and investment.

Shorooq Partners, the alternative investment manager in the Middle East and North Africa, announced the first close of its $100 million second private credit fund. Building on the success of its first tech-focused private credit fund in the region, Shorooq Partners remains committed to fostering innovation and growth in the MENA tech ecosystem.

The new fund is launched in collaboration with IMM Investment Global (IMMG), a leading private equity and venture capital firm in Korea with over $6 billion in assets under management. IMMG joins the fund as a minority partner, continuing the partnership established with the first credit fund launched three years ago.

The initial fund, now fully deployed, included notable investments such as Pure Harvest, a smart farm producing fresh crops in desert environments, and Tamara, Saudi Arabia’s first Buy Now, Pay Later (BNPL) platform and fintech unicorn. These deals significantly reshaped the region’s fundraising landscape.

Shane Shin, Founding Partner at Shorooq Partners, emphasized the importance of non-dilutive financing in the MENA region, where debt financing among founders is gaining traction. He highlighted that non-dilutive funding provides a sophisticated alternative to traditional equity-based approaches, particularly beneficial for mature companies and founders who have completed Series A rounds. The tailored solutions focus on recurring revenue, robust cash flow, and tangible assets, ensuring alignment with strategic and institutional investors.

The private credit market in the MENA region has grown remarkably, driven by the thriving tech ecosystem and increasing demand for alternative financing solutions. Recent data shows that the MENA private credit market grew at a compound annual growth rate (CAGR) of 12% over the past five years, indicating significant opportunities for expansion and investment.

Nathan Kwon, Principal at Shorooq Partners, noted that last year saw over $400 million in deal flow after screening companies that did not qualify for credit.

This surge reflects strong interest in the fund’s mission to foster scalable growth in its portfolio companies. With an average ticket size of $10 million, the fund seeks to invest in companies in manufacturing, industrials, financing, and software services looking for capital to advance to the next stage.