Riyadh, Saudi Arabia: Saudi Arabia’s technology investment company Merak Capital has launched its first credit fund under the Capital Market Authority new regulation for direct financing investment funds.
The Shariah-compliant, SAR 200 million ($53 million) Merak Direct Lending Fund – I is designed to provide direct lending to Saudi-based technology, tech-enabled, and high growth companies to help them finance short to midterm commitments and enhance their ability to scale, Merak said in a statement.
The fund aims to underwrite loans between 5 to 20 million SAR, targeting a portfolio of 20 borrowers. By focusing on companies that have a financial history of two to three years, Merak Capital intends to address an underserved segment in Saudi’s middle market, the statement said.
“It will provide companies with an alternative access to financing in line with the Saudi Vision 2030, which aims to diversify the economy and create more opportunities for SMEs,” it added.
Mohanned Alfayez, Partner at Merak Capital, said, “We are committed to provide our investors with new opportunities for diversifying their investment portfolios and to unlock the potential of the Private Debt asset class in the local market.”