News

Alkhabeer Capital launches Private Equity Fund targeting Saudi Arabia’s emergent education sector

25 April 2016

Jeddah, Saudi Arabia – 25 April 2016: Alkhabeer Capital, the asset management and investment firm based in Jeddah, Saudi Arabia, announced today the launch of Alkhabeer Education Private Equity Fund I (“The Fund”), the first education-focused product in its Private Equity investment portfolio.

The Fund is a closed-ended investment fund that was launched in Q4 2015 and offered by way of private placement, according to the Investment Fund Regulations. It aims to generate returns by acquiring a controlling stake in Adwa’a Al Riyadh Education Company, a privately-owned provider of primary, secondary, and high school education in Riyadh. The Fund provides a direct channel for investors to access Saudi Arabia’s education market, the largest in the Arabian Gulf Region.

Commenting on the launch of the Fund, Ahmed Saud Ghouth, Chief Executive Officer of Alkhabeer Capital, said: “The government is aggressively investing in diversifying and growing its non-oil economy including the announcement of US$51 billion budget allocation for the education sector in 2016. This pledge also provides interest-free, long-term developmental loans to schools through the Ministry of Finance to foster the growth of the Kingdom’s private education sector.”

The increase in government focus on privatization, coupled with the low penetration rate of private schools in the country, provide promising investment factors for the private sector.

Mr. Ghouth added: “We are very pleased to partner with Adwa’a Al Riyadh Education Company, which has demonstrated a robust and sustainable business model since its establishment in 2001. Our Private Equity team has developed a detailed plan alongside the management for creating further value through introducing new programs and activities, while optimizing current operations by identifying efficiency improvement areas and increasing capacity and capacity utilization.”

Mr. Ibrahim Al Muhanna, Chairman of Adwa’a Al Riyadh Education Company, commented: “The partnership with Alkhabeer Capital represents a key milestone for the Company’s evolution and supports our goal in becoming a leading education company. Adwa’a Al Riyadh is uniquely positioned to benefit from the government commitment to develop the education sector.”

Alkhabeer Capital is a leading asset management and investment firm, authorized by the Capital Market Authority (license number 07074-37).