Z Capital Group (“ZCG”), a leading privately held merchant bank, and Zahrat Al Amaal Holding Company (“Fawaz Alhokair”), an investment entity founded by Fawaz Alhokair, today announced a direct lending joint venture focused on providing flexible capital solutions to high-growth small- and medium-sized enterprises (SMEs) in Saudi Arabia.
The strategic partnership, set to be operational by the end of 2024, will directly source and originate senior secured and asset-based loans, offering growth capital solutions and alternative financing opportunities to SMEs across industries throughout Saudi Arabia.
Utilizing Fawaz Alhokair’s local relationships, market insight, and robust investment pipeline across industries, as well as ZCG’s complementary asset management, in-house consulting, and innovative proprietary technology solutions, the joint venture will seek to invest in strong companies with resilient business models, highly predictable cash flows, high-quality management teams, and strong growth.
“As a global investor with a deep track record and unique experience, we share Fawaz Alhokair’s conviction in the long-term growth opportunities for SMEs, and look forward to our joint venture delivering a new private capital solution for high-growth businesses in Saudi Arabia,” said James Zenni, Founder, President, and Chief Executive Officer of ZCG. “Bringing together ZCG’s global investment, consulting, and technological expertise with Fawaz Alhokair’s excellent reputation, network, and market insight to support the businesses propelling economic development within the region, we can deliver on our investment return and economic development goals.”
The strategic focus of the joint venture aligns with the rapid growth and market opportunities presented throughout the Kingdom, underscored by nearly nine percent GDP growth in 2022. The nation’s young and consumer-oriented population presents an attractive landscape for investment. Additionally, the surge in the number of small- and medium-sized companies in recent years further enhances the potential throughout the region.
“We welcome our partnership with ZCG, one of the leading U.S. private equity firms with an over 25-year track record in private debt,” said Fawaz Abdulaziz Alhokair. “In line with Vision 2030 and the government’s objective to increase access to capital for local SMEs, we believe in the success of such a venture. Leveraging our local capabilities, extensive network, and market insights, coupled with ZCG’s technology and proven track record in managing such business, we anticipate a mutually beneficial collaboration.”
About ZCG
ZCG is a leading, privately held merchant bank comprised of private markets asset management, business consulting services, technology development and solutions.
For almost 30 years, ZCG Principals have invested tens of billions in capital and have industry leading track records in private equity and credit.
ZCG has approximately $7B of AUM in asset management and its investors are some of the largest and most sophisticated global institutional investors including pension funds, endowments, foundations, sovereign wealth funds, central banks, and insurance companies.
ZCG has a global team comprised of over 400 professionals. For more information, please visit www.zcg.com.
About Zahrat Al Amaal Holding Company
Founded by Fawaz Abdulaziz Alhokair, Zahrat Al Amaal Holding Company is an investment entity which focuses on two segments: healthcare and financial services. The company focuses on setting joint ventures with strategic partners, leveraging on its local expertise and the partner’s track record to ensure the success of the joint venture.
