Abu Dhabi-based Shorooq Companions has launched a brand new $100 million enterprise debt fund and hit its first shut, the agency introduced on Thursday. The small print of how a lot the agency has raised within the first shut weren’t disclosed. It’s Shorooq’s second debt fund. The primary was launched over three years in the past in partnership with Korean enterprise capital and personal fairness agency IMM Funding World (IMMG), and has been totally deployed now, with investments in companies like Pure Harvest and Tamara.
The Saudi fintech Tamara introduced securing $250 million in debt financing in November final yr, $50 million of which got here from Shorooq, and the remaining from Goldman Sachs.
For its second ‘personal credit score’ fund, Shorooq has partnered once more with Korean agency, which is becoming a member of the fund as a minority associate, in accordance with a press release by Abu Dhabi-based investor.
The assertion by Shorooq famous that the ventures their first debt fund invested in have “emerged as leaders of their respective sectors, underscoring the affect of Shorooq Companions’ and IMMG’s credit score facility in fueling innovation and driving financial development.”
It additionally hinted that the fund will spend money on Collection A+ firms working within the manufacturing, financing and software program companies house, with a median ticket measurement of $10 million+.
Based in 2017 by Shane Shin and Mahmoud Adi, Shorooq Companions began as a VC agency and now positions itself as a substitute funding supervisor, with a number of enterprise capital and debt funds that spend money on startups throughout the area. A few of its notable investments aside from Pure Harvest and Tamara, embody Nymcard, Sarwa, Lean Applied sciences, Trukker, and Lendo.
Shane Shin, a Founding Accomplice at Shorooq Companions, commenting on the launch and first shut mentioned, “It’s crucial to acknowledge the nuanced benefits of non-dilutive financing, significantly throughout the MENA area the place debt financing amongst founders is steadily gaining momentum. Amidst this panorama, we champion the pivotal function of non-dilutive funding, providing a classy various to conventional equity-based approaches.
“For mature firms and founders who’ve navigated the complexities of fundraising and attained the milestone of a accomplished Collection A spherical, our tailor-made options present a compelling avenue for sustained development. With a give attention to recurring income, sturdy money circulate positions, and tangible belongings, our focused strategy ensures alignment with our strategic and institutional traders,” he added.
Nathan Kwon, a Principal at Shorooq Companions, who’s main this fund, mentioned, “Final yr we noticed over $400mm of dealflow after screening for firms that didn’t qualify for credit score. This surge in deaflow underscores a strong curiosity in the direction of the fund’s mission to foster scalable development within the firms we spend money on.”
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