Saudi Arabian non-public fairness investments reached a report excessive of $4 billion in 2023, amid a development in rising enterprise buyouts by traders within the kingdom.
A brand new report from monetary knowledge agency MAGNiTT and Saudi Enterprise Capital Firm reveals that the Gulf nation has seen rising curiosity in non-public fairness transactions over the previous 5 years. After quantity multiplied to $610 million in 2021, non-public fairness broke the billion-dollar mark in 2022 with $3.58 billion, 5.9 occasions the 2021 degree. In 2023, it reached an all-time excessive of three.97 billion {dollars}.
The report states that non-public fairness investments within the kingdom are sometimes pushed by buyout transactions, the place an investor seeks to amass a controlling majority of no less than 50%.
In 2023, 70% of whole non-public fairness transactions consisted of buyouts and in 2022 this was 75%. In 2021, the buyout share of whole transactions reached the best degree of 80%.