In partnership with IMM Investment Global (IMMG), Shorooq Partners has announced the first closing of its $100 million second private credit fund, which aims to spur innovation and growth in the MENA digital sector.
Pure Harvest, a smart farm in arid conditions, and Tamara, Saudi Arabia’s first Buy Now, Pay Later platform and fintech unicorn, are two notable investments from the fully deployed first credit fund that demonstrate the revolutionary power of non-dilutive financing.
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Due to the digital ecosystem and the need for alternative financing, the MENA private credit market has grown significantly over the last five years, with a 12% compound annual growth rate (CAGR). This growth has created numerous opportunities for investment and expansion.
The $100 million second private credit fund’s first close was announced by Middle East and North Africa’s alternative investment manager, Shorooq Partners. Continuing to support innovation and expansion in the MENA tech sector, Shorooq Partners is building on the success of its first tech-focused private loan fund in the area.
With over $6 billion in assets under management, IMM Investment Global (IMMG), a top venture capital and private equity firm in Korea, is partnering with us to launch this new fund. As a minority partner in the fund, IMMG carries on the relationship started with the first credit fund three years prior.
The inaugural fund, now fully deployed, invested in Pure Harvest, a smart farm growing fresh foods in deserts, and Tamara, Saudi Arabia’s first Buy Now, Pay Later platform and financial startup. These deals transformed regional fundraising.
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In MENA, where founder debt financing is growing, Shorooq Partners Founding Partner Shane Shin stressed the necessity of non-dilutive financing. He said non-dilutive finance is a sophisticated alternative to equity-based models, especially for mature companies and entrepreneurs who have completed Series A rounds. Strategic and institutional investors are aligned with specialised solutions that emphasise recurring revenue, cash flow, and physical assets.
The MENA private loan sector has risen rapidly due to the tech ecosystem and desire for alternative financing. Over the past five years, the MENA private credit market grew at 12%, signalling growth and investment prospects.
Nathan Kwon, Principal at Shorooq Partners, said last year witnessed over $400 million in deal activity after screening credit-ineligible companies.
This rise shows tremendous interest in the fund’s objective to scale portfolio companies. With an average ticket size of $10 million, the fund invests in manufacturing, industrial, financial, and software services companies seeking growth funding.
About Shorooq Partners
Shorooq Partners is the leading MENA technology investor. The firm is based on Founders’ Partners, Company Builders, Value Investors.
