Brookfield closes $2bn Middle East private equity fund

By Milan Rojan

Brookfield has completed the first close of Brookfield Middle East Partners (BMEP), raising approximately $2 billion for a private equity fund anchored by Saudi Arabia’s Public Investment Fund (PIF) to invest in businesses across Saudi Arabia and the wider Middle East.

Bruce Flatt, Chief Executive Officer of Brookfield Corporation, said: “We see a compelling opportunity to partner with businesses across the region and position them for long-term growth.”

The fund has secured commitments from PIF alongside other global and regional institutional investors. It has been established to pursue buyouts, minority growth equity investments and other private equity opportunities across sectors including financial services, business services, consumer services, industrials, technology and healthcare.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region. It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem.”

Brookfield said the capital has been earmarked for investments across the Middle East, with a focus on high-growth Gulf Cooperation Council (GCC) markets. Around 50% of the fund’s investments have been targeted for Saudi Arabia, supporting the kingdom’s efforts to attract international capital and strengthen its financial markets.

PIF has participated as an anchor investor as part of its strategy to expand global partnerships, diversify the Saudi capital market and broaden financing options for businesses.

Brookfield has committed $500 million to the fund alongside its investment partners. The firm said it will also introduce the Brookfield Academy in Saudi Arabia to provide professional development and learning opportunities for industry participants.

Brookfield has invested in the Middle East since 2015 and currently manages more than $16 billion in regional assets spanning private equity, real estate and infrastructure.