A new report reveals a dramatic surge in Saudi Arabia’s private equity (PE) activity. The “2019-2023 Saudi Arabia Private Equity Report” by MAGNiTT and SVC shows a steady climb since 2020, peaking at a staggering $4 billion in 2023. This translates to a 3.7x increase in 2021 and a phenomenal 5.9x jump from 2021 to 2022.
Buyouts Take Center Stage
The report highlights a significant shift in deal types. Buyout transactions, where PE firms acquire a controlling stake in a company, have grown dramatically. Their share has risen by 20 percentage points since 2020, now capturing an average of 80% of total PE investment. Growth capital, which focuses on fueling existing companies, saw a more modest 2% increase.
Industry Trends: Food & Beverage Popular, Manufacturing Tops Investment
The PE landscape exhibits both diversity and concentration. Food & Beverages saw the most frequent deals, while Manufacturing attracted the most capital, accounting for 46% of total investment over the past five years.
A Catalyst for Growth
Dr. Nabeel Koshak, CEO of SVC, emphasizes the report’s importance: “This report unveils the promising growth trajectory of private equity in Saudi Arabia and underscores its increasing prominence within the Kingdom’s financial ecosystem.” He highlights SVC’s commitment to fostering both venture capital and private equity growth through targeted investment programs.
Expanding Coverage
Philip Bahoshy, CEO of MAGNiTT, emphasizes their expansion into private equity research: “We’re excited to delve into the private equity landscape alongside our partners at SVC. This report sheds light on the crucial role of PE in shaping Saudi Arabia’s financial future.”
This report offers valuable insights for investors and stakeholders interested in the dynamic and rapidly growing Saudi Arabian private equity market.
https://magnitt.com/research/saudi-arabia-private-equity-report-50918