The private credit fund Ruya Private Capital I LP, run by Ruya Partners, announced it received a US$10 million investment from Saudi Venture Capital (SVC), to support the funding process for SMEs.

The fund will focus on offering capital solutions in the form of private debt instruments to SMEs, and mid-market companies, including late-stage venture capital-backed businesses in Saudi Arabia and the region.

Ruya Partners is an independent private credit firm that provides funding solutions to private sector companies in developing markets.

The governmental investment company, SVC, is a subsidiary of the SME Bank, and one of the developmental banks affiliated with the National Development Fund. Its aim is to support financing for startups and SMEs from pre-Seed to pre-IPO by investing $2 billion through investment in funds and co-investment in startups. 

The subscription agreement was signed by Nabeel Koshak, CEO and Board Member at SVC, and Omar Al Yawer, Partner at Ruya Partners. 

Koshak said: “The investment in the private credit fund managed by Ruya Partners is part of SVC’s Investment in Funds Program. 

“The investment also comes as a result of the increasing demand for venture debt and private debt by Saudi startups and SMEs and to implement SVC’s strategy related to the launch of the “Investment in Venture Debt Funds and Private Debt Funds” product to fill financing gaps in the ecosystem”.

“We are honored to have received this commitment of capital and trust from SVC and look forward to a successful partnership together,” said Omar Al Yawer. 

The Founding Partners Mirza Beg and Rashid Siddiqi added: “We firmly believe that offering private credit capital solutions to companies in a manner which is non-dilutive to shareholders will serve as a powerful catalyst for their future growth and should contribute towards the continued expansion and development of the SME ecosystem.”

SVC invested in 43 funds that have invested in more than 700 companies.