Second private credit fund launched by Shorooq Partners with $100 M first close
The $100 million second private credit fund has seen its first close, according to Shorooq Partners, the first alternative investment manager in the Middle East and North Africa. Shorooq Partners is still committed to promoting innovation and expansion in the MENA tech ecosystem, as evidenced by the tremendous success of its inaugural fund, which set a precedent as the first tech-focused private credit fund in the region.
IMM Investment Global (IMMG), a division of IMM Investment, a top Korean private equity and venture capital firm with over $6 billion in assets under management, is collaborating with the fund’s launch as a minority partner. The three-year-old first credit fund that the two companies established served as the foundation for the current partnership.
When this first credit fund was fully implemented, it saw several noteworthy transactions that changed the fundraising environment in the area. Tamara, the first Buy Now, Pay Later (BNPL) platform and fintech unicorn in the Kingdom of Saudi Arabia, and Pure Harvest, an intelligent farm growing fresh crops in the middle of deserts, are noteworthy investments. The fact that these businesses have become industry leaders highlights the importance of IMMG’s and Shorooq Partners’ lending facilities in stimulating innovation and economic expansion.
Shane Shin, Founding Partner at Shorooq Partners, added, “It’s imperative to recognize the nuanced advantages of non-dilutive financing, particularly within the MENA region where debt financing among founders is steadily gaining momentum. Amidst this landscape, we champion the pivotal role of non-dilutive funding, offering a sophisticated alternative to traditional equity-based approaches. For mature companies and founders who have navigated the complexities of fundraising and attained the milestone of a completed Series A round, our tailored solutions provide a compelling avenue for sustained growth. With a focus on recurring revenue, robust cash flow positions, and tangible assets, our targeted approach ensures alignment with our strategic and institutional investors. As the MENA region continues its ascent as a hub of entrepreneurial dynamism, discerning founders recognize the imperative of integrating non-dilutive financing into their fundraising calculus, positioning themselves not just for growth but for enduring success amidst evolving market dynamics.”
Due to the expanding tech ecosystem and rising demand for alternative financing options, the private credit market in the Middle East and North Africa (MENA) has experienced impressive growth. Based on new data, the private credit market in the Middle East and North Africa (MENA) expanded at a compound annual growth rate (CAGR) of 12% during the previous five years, indicating substantial growth and investment opportunities.
