UAE-based asset manager Shuaa Capital has launched a US$250 million sharia fund focused on venture debt investments.
According to the firm, Shuaa Venture Partners is the largest venture debt fund in the GCC and will aim to provide an alternative source of capital to high growth companies in the region.
“We aim to support the growth of businesses, create jobs, lead further developments in innovation and technology, support economic diversification and guide founders towards realizing their vision,” said Natasha Hannoun, head of debt at Shuaa Capital.
“Our investors have the opportunity to diversify into a new asset class in technology, with a shorter investment horizon, frequent distributions and attractive financial returns.”
Investments in growth companies throughout the GCC have been dominated by early-stage transactions and investors, with few able to support businesses throughout their growth cycle, according to Shuaa Capital.
As a result, several growth-stage companies have limited access to larger pools of capital and non-equity financial solutions; a gap which needs to be filled for new ventures to succeed.
The GCC has seen a year on year increase of 112% in venture capital transactions, with total investments of over $1.7 billion across 281 deals, the majority of which have been early-stage investments.
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