Brookfield has raised approximately $2 billion at the first close of Brookfield Middle East Partners, a new private equity fund anchored by Saudi Arabia’s Public Investment Fund.
The capital came from PIF and other strategic anchor investors, including global and regional institutional partners. Brookfield is committing $500 million of its own capital to the fund, aligning the asset manager’s interests with those of its investment partners.
Brookfield Middle East Partners will invest in businesses based in Saudi Arabia and the broader Middle East. The fund will primarily target high-growth markets in the Gulf Cooperation Council, with approximately 50% of its investments expected to be allocated to Saudi Arabia.
The strategy will pursue buyouts, minority growth investments and other private equity opportunities across financial services, business services, consumer services, industrials, technology and healthcare.
A buyout generally gives an investment firm control of a company, while a minority growth investment provides capital to help a business expand without requiring its founders or current owners to surrender control.
Brookfield plans to use its investment teams in Riyadh and its broader global network to identify companies that could benefit from additional capital, operational support and international expansion.
The new fund gives Brookfield dedicated capital for investing in a region where governments are working to attract private investment, develop local companies and diversify their economies beyond traditional energy industries.
For PIF, anchoring the fund supports its strategy of partnering with global investment firms to expand Saudi Arabia’s capital markets and bring additional institutional capital into the kingdom.
PIF said the partnership could increase the financing options available to local companies, introduce additional investment products and support the development of domestic financial institutions, talent and capabilities.
The fund could also help international companies establish or expand operations in Saudi Arabia. Brookfield’s global portfolio and operating experience may provide regional businesses with access to international markets, management expertise and potential acquisition opportunities.
Brookfield manages approximately $1 trillion in assets globally. The firm said its existing Middle Eastern portfolio includes more than $16 billion of managed assets across private equity, real estate and infrastructure.
The asset manager has been directly investing in the region since 2015. Its growing presence reflects increasing interest among international private equity and infrastructure managers in Saudi Arabia, the United Arab Emirates and other Gulf markets.
Saudi Arabia is seeking to establish itself as a major destination for international capital as it develops new industries under its broader economic transformation strategy.
The Brookfield partnership is intended to bring global private equity expertise into the local market while accelerating the number of transactions completed across Saudi Arabia and the wider region.
As part of the initiative, Brookfield will also make the Brookfield Academy available in Saudi Arabia. The program, founded in 2019, provides interactive learning and professional development opportunities for employees of Brookfield’s investment partners.
The first close represents a major fundraising milestone at which a fund begins accepting and deploying committed capital. Brookfield did not disclose whether it plans to raise additional capital through subsequent closings.
Brookfield Middle East Partners will now begin deploying the approximately $2 billion across its targeted sectors and geographies. The fund’s combination of PIF backing, Brookfield’s commitment and participation from other institutions positions it as a significant source of private equity capital for companies across the region.
