Jadwa Investment, Saudi Arabia’s leading investment management and advisory firm, announced today the launch of its first closed-ended mezzanine financing fund. The new Shariah-compliant offering is part of Jadwa’s ongoing commitment to expanding clients’ access to new asset classes.
The fund will provide Shariah-compliant mezzanine financing to high-quality companies through a commodity murabaha arrangement, with the aim of generating a stream of income distributions for the fund’s investors. Through this fund, Jadwa will offer Shariah-compliant mezzanine financing to ADES Investments Holding Ltd., a DIFC-based holding company.
Tariq Al-Sudairy, Managing Director and CEO of Jadwa Investment, commented: “We are delighted to launch our first mezzanine financing fund as part of our commitment to enable clients to access a broader universe of Shariah-compliant investments across asset classes and geographies. We believe there are compeling opportunities in the mezzanine financing space in the region that provide investors attractive annual yield and double-digit returns with a moderate risk profile.” He added: “Despite the challenging circumstances of the pandemic, Jadwa has continued to actively originate and execute attractive investment opportunities locally and internationally, further solidifying its leadership position in the Kingdom and wider region.”
Ayman Abbass, Chairman of ADES Investments Holding Ltd., commented: “We are pleased to begin this partnership with Jadwa Investment through the mezzanine financing facility, as we are always keen on building longstanding relationships with regional and international financial institutions who share a common vision and enable the group to achieve its strategic goals.”
Earlier, Jadwa set a new milestone for its investment advisory practice by crossing SAR 30 billion in assets under advisement (AUA) in 2020. This represents a significant increase over the firm’s AUA of SAR 13.4 billion at year end 2019. The introduction of investment advisory alongside Jadwa’s longstanding investment management services has also effectively doubled the firm’s total client assets, which stood at SAR 63.8 billion at year end 2020.