- Afaq Capital fully acquires a venture capital portfolio in Saudi Arabia, marking the first deal of its kind in the region.
- The transaction represents the first full exit and acquisition in the venture capital sector, boosting investor confidence in the potential for real and sustainable returns.
- The deal is expected to contribute to capital recycling and encourage the creation of new venture capital funds.
Afaq Capital, licensed by the Capital Market Authority (CMA) of Saudi Arabia, announced its full acquisition of a venture capital investment portfolio — a first-of-its-kind deal in the Kingdom. The transaction was executed in collaboration with Cotyledon Management Consulting, which structured and managed the process.
This deal marks the first full exit and acquisition of a venture capital portfolio in the region, representing a significant milestone in the development of the startup investment ecosystem in Saudi Arabia.
A First Full Exit in the Sector Boosts Investor Confidence
Commenting on the transaction, Hassan Ikram, Founder and CEO of Cotyledon, stated that the deal represents the region’s first complete exit of its kind. He emphasized that liquidity events have become a tangible reality in the venture capital space, reinforcing confidence among both local and international investors in the potential for sustainable returns from this growing sector.
A Strategic Step Toward Market Maturity and Investment Growth
This transaction carries strategic significance, sending positive signals to investors about the availability of clear and effective exit mechanisms. It is expected to attract more capital into the Saudi market, promote capital recycling, and encourage the establishment of new venture capital funds.
The move aligns with Saudi Arabia’s Vision 2030, which aims to position the Kingdom as a regional hub for innovation and private investment, while driving the growth of the private sector.
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