PIF’s Jada backs $200m Growth Catalyst Fund targeting Saudi mid-market firms

Jada Fund of Funds, a subsidiary of Saudi Arabia’s Public Investment Fund, has committed to the first close of Growth Catalyst Fund I, a private equity vehicle targeting $200 million for mid-market investments. The sector-agnostic fund focuses on established and late-stage Saudi companies with proven business models, aiming to scale their operations and prepare them for future exits. This commitment underscores the ongoing effort by government-backed entities to institutionalize the Kingdom’s private capital market and support the growth equity segment.

Jada Fund of Funds has announced its commitment to Growth Catalyst Fund I, a Saudi-based private equity vehicle targeting SR750 million ($200 million). Licensed by the Capital Market Authority, the fund is designed to invest in mid-market companies across various sectors within the Kingdom. Jada serves as an early institutional backer for the fund’s first close, joining other major regional players like Saudi Venture Capital (SVC), which previously invested in the vehicle in April. SVC recently reported that its cumulative commitments have reached $1.2 billion across 65 funds, helping to attract nearly $6 billion from various investment partners.

The fund’s strategy involves targeting established and late-stage enterprises that demonstrate proven business models and significant growth potential. By providing capital and expertise, Growth Catalyst Fund I aims to help portfolio companies accelerate their scaling efforts, strengthen corporate governance, and enhance operational capabilities. These improvements are intended to position the companies for successful exits through either strategic transactions or public capital markets, aligning with the broader goals of Saudi Arabia’s Vision 2030 for economic diversification.

Bandr Alhomaly, CEO and managing director of Jada, emphasized that growth equity is a critical component of a mature private capital ecosystem, particularly for companies ready to scale. He noted that the investment reflects Jada’s confidence in the Saudi mid-market and its commitment to developing the next generation of local fund managers. Turki Al-Dayel, founder and CEO of Growth Catalyst, added that Jada’s role as an anchor investor validates the fund's strategy and the specific opportunities present within the Kingdom's mid-market segment.

This investment is part of a wider trend of institutional support for Saudi Arabia’s private capital markets. Jada has recently backed other vehicles, such as Stride Ventures Debt Fund V to broaden private debt financing, while the SIDF Investment Co. has supported Khwarizmi Ventures Fund II to assist technology startups. These efforts contribute to a full spectrum of funding options, ranging from venture capital to private debt, as the Kingdom seeks to deepen its capital markets and attract increasing levels of foreign and domestic institutional investment.