Saudi state-backed investor Saudi Venture Capital (SVC) is pivoting its $3bn investment mandate to allocate a larger share to private credit, aiming to support the kingdom’s evolving financing ecosystem, according to a report by Bloomberg.
The fund, which primarily operates as a fund of funds, plans to dedicate half of its portfolio to private credit and equity, up from roughly a third last year, according to CEO Nabeel Koshak. The remainder will continue to back venture funding initiatives.
The move comes as small and medium-sized enterprises in Saudi Arabia seek alternative sources of capital amid tighter liquidity conditions and challenges accessing traditional bank financing.
SVC has already made initial moves into private credit and venture debt, investing in Partners for Growth and Ruya Partners, while continuing to back established private equity and venture capital funds such as General Atlantic and Global Ventures.
The fund’s strategy will be highlighted at the upcoming Private Capital Forum in Riyadh, where investors and policymakers will discuss regulatory hurdles, financing gaps, and the growing role of private credit and equity in the Gulf region.
Launched in 2018, SVC has a target to deploy $3bn by 2030, averaging about $300m in annual investments over the past two years, a pace it plans to maintain through 2026. The initiative aligns with broader Saudi ambitions to diversify the economy beyond oil, supporting entrepreneurship and financial market development under Crown Prince Mohammed bin Salman’s economic vision.
