Saudi PIF explores asset securitisations and stake sales to unlock capital
Saudi Arabia's Public Investment Fund (PIF) is exploring new fundraising structures, including securitisations of portfolio company cash flows and minority stake sales, as it seeks to attract private capital and reduce reliance on its own balance sheet, according to a report by Reuters. The sovereign wealth fund, which manages more than $900bn, is evaluating ways to generate liquidity from…
The Public Investment Fund (PIF) of Saudi Arabia is examining innovative methods to raise funds, such as securitising cash flows from its portfolio companies and selling minority stakes, as outlined in a Reuters report. With a portfolio exceeding $900 billion, the sovereign wealth fund is exploring ways to unlock liquidity from its existing investments while continuing to fund Saudi Arabia's Vision 2030 program aimed at diversifying the economy.
Potential strategies under consideration involve selling stakes in well-established businesses and attracting external investors to bolster younger portfolio ventures. This move comes as Saudi Arabia faces tighter liquidity conditions in its banking sector, declining regional IPO activity, and increasing demands for portfolio companies to become financially independent.
Initial talks with potential investors have encountered difficulties concerning valuations and control provisions. Moreover, the fund's average total shareholder return, measured annually since 2017, has decreased to 5.8% by the end of 2025, down from 7.2% the previous year.
In alignment with its 2026-2030 strategy, PIF is placing greater emphasis on realizing investment value and fostering private sector involvement. Recent actions include the sale of a 70% stake in football club Al Hilal to Kingdom Holding Company and a 49% stake in AI company Humain to Saudi Aramco, which will inject $2.6 billion into the latter this year.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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