Saudi Arabia’s Hassana to back $2bn Brookfield Middle East fund

Saudi Arabia’s Hassana Investment Company, the investment arm of the General Organization for Social Insurance (GOSI), will back Brookfield Asset Management’s new $2bn Middle East fund, giving the Canadian investment firm extra financial firepower to pursue deals in the oil-rich Gulf region.

“Brookfield Asset Management, with its long-term investment approach, is an ideal partner for Hassana as we invest in opportunities that are aligned with our commitment to creating long-term value and delivering the best investment outcomes,” said Saad bin Abdulmohsen Al-Fadly, the CEO of Hassana.

“This partnership will enable us to leverage Brookfield’s expertise and robust track record in private equity, allowing us to commit to deploying capital in sectors that are vital to the growth of the Saudi economy.”

Hassana is allocating up to $500m in Brookfield Middle East Partners in addition to Brookfield’s own $500m. That would bring Hassana on board with Saudi Arabia’s Public Investment Fund (PIF), which announced on Wednesday that it had entered a non-binding agreement to become an anchor investor in the private equity fund.

PIF did not disclose the size of its potential backing. PIF and Brookfield said in a joint statement that at least half of the fund will be allocated to deals within the kingdom and to international firms looking to expand locally — a move aimed at attracting foreign direct investment.

The deal, signed at the Future Investment Initiative (FII) forum in Riyadh, seeks to leverage PIF and Brookfield’s relative strengths to enhance local private equity investment opportunities and foster economic development in the kingdom.

The new entity will receive additional cash injections from local and international investors. The Riyadh-based investment platform will invest across a range of asset classes. By supporting foreign institutional investment in Saudi Arabia, it is expected to accelerate the growth of capital markets.

Brookfield, which manages approximately $1tn in assets across more than 30 countries in five continents, will expand its Riyadh office as part of the deal and make its Brookfield Academy available in Saudi Arabia to facilitate knowledge-sharing and talent development.

The Brookfield fund will target buyouts, structured solutions, and other investment opportunities across a range of strategic sectors, including industrial, business, consumer services, technology, and healthcare.

Separately, Hassana said it intends to become an anchor investor in a $1bn Middle East-focused fund launched by US investment firm EIG. The investment firm plans to allocate up to $250m for the fund, which will target infrastructure and energy transition projects.

Read: Saudi wealth fund PIF to anchor Brookfield’s $2bn Middle East fund