RIYADH: A significant partnership was established between the Public Investment Fund (PIF) and Goldman Sachs Asset Management with the signing of a non-binding memorandum of understanding in Riyadh. This agreement positions the PIF as an anchor investor in new private and public funds across Saudi Arabia and the GCC.
An anchor investor plays a crucial role by supporting a business or asset before its public stock market launch, thereby enhancing its value and reputation.
This collaboration aims to transform Saudi Arabia into an investment hub, leveraging PIF’s institutional strength and Goldman Sachs’ expertise. The focus is on attracting international equity capital, with a substantial amount directed toward Saudi investments.
Yazeed Al-Humied, Deputy Governor and Head of Middle East and North Africa Investments at PIF, emphasized that asset management is integral to diversifying Saudi Arabia’s economy and bolstering local capital markets.
He remarked that the agreement with Goldman Sachs is part of PIF’s strategy to draw global capital and expertise, while also promoting knowledge transfer and capacity-building within the Kingdom.
The partnership will focus on private-credit strategies involving senior and junior loans for companies in the GCC, and public equity strategies targeting investments in Saudi-associated publicly listed companies.
Goldman Sachs has bolstered its presence in Saudi Arabia with a new office in Riyadh. Marc Nachmann, Global Head of Asset and Wealth Management, expressed pride in collaborating with PIF to develop investment strategies.
“With decades of experience in public and private markets, our goal is to help clients tap into the dynamic opportunities arising from the rapid economic transformation in Saudi Arabia and the wider GCC,” Nachmann stated.
The PIF is committed to supporting Saudi Arabia’s Vision 2030, aiming to diversify and develop the national economy through various investments and partnerships. Since 2017, it has launched 103 companies to stimulate investment opportunities within the Kingdom.
