Gate Capital News Letter | Issue 720

Saudi Arabia’s Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners, signed a definitive agreement to acquire video-game giant Electronic Arts Inc. (EA) in a record-breaking $55 billion all-cash transaction. Under the terms of the agreement, the consortium will purchase 100% of EA, with PIF rolling over its existing 9.9% stake in the company. EA stockholders will receive $210 per share in cash, according to a statement today, Sept. 29.

American private equity firm KKR has acquired a minority stake in ADNOC Gas Pipeline Assets LLC, as it increases its footprint in the Middle East and expands regional partnerships and investment. Pipeline ownership and operational management will remain with ADNOC.  KKR is acquiring a stake through its managed accounts, matching the type and tenure of the investment with long-duration capital, the companies said.

Dubai-based FIVE Holdings has secured a $460 million revolving credit facility (RCF) as the hospitality and development company eyes a $500 million investment over the next two years to expand its portfolio across the US, Asia and the UAE.

Sovereign investors across the Middle East and North Africa are on track to lift their combined assets to around $8.8 trillion by 2030, a jump of more than 57 percent in five years.

Swapp, the UAE-based online car rental service, expands its strategic partnership with the Careem Everything App, with Careem now owning a minority stake in the company. Careem integrated Swapp into its app as Careem Car Rental in 2022, expanding mobility options in the UAE to include car rental and subscription services. The addition of Swapp further expanded the range of digital mobility, delivery and fintech services available through the Careem Everything App.

A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has emerged as the lead investor in the creation of a single-asset continuation vehicle (CV) by GL Capital. GL Capital, a China-based private equity firm focused on healthcare, is raising the CV for SciClone Pharmaceuticals, a U.S.-based company.

UAE-based venture capital firm Iliad Partners has announced the second closing of its $50 million Iliad Partners Tech Ventures Fund I. The new closing of the Iliad Fund features three leading Greek banks – Eurobank, National Bank of Greece and Piraeus Bank – which are joining the Fund as strategic LPs with significant commitments – a strong vote of confidence in Iliad’s strategy.

This marks their first-ever VC investment in MENA, underscoring a shared commitment to fostering innovation, a common belief in the potential of GCC markets, while also aligning with their broader strategy of expanding into the region, with a particular focus on Saudi Arabia and the UAE.

Emergent, one of the fastest growing AI startups globally, announced $30 million in total funding, including a new $23 million Series A led by Lightspeed. Founded earlier this year in San Francisco, Emergent has already reached $15 million in annual recurring revenue (ARR) within just 90 days of launch.

BECO Capital announces the close of $370 million across two new funds, expanding BECO’s ability to back founders from Pre-Seed to IPO, with a continued focus on the UAE and Saudi Arabia. The raise includes $120 million for BECO Fund IV, the firm’s fourth early-stage fund, and a $250 million Growth Fund.

South Korea’s Rebellions raised $250 million in a Series C round at a $1.4 billion valuation, backed by Arm, Samsung Ventures, Pegatron VC, Korea Development Bank, Korelya Capital, and Lion X Ventures. The deal follows earlier investment from Saudi Arabia’s Wa’ed Ventures (Aramco’s VC arm).

A UAE-based startup, YAL.ai, is tackling this challenge head-on with $12 million in fresh Series A funding to develop an AI-driven platform that aims to make communication scam-free and secure worldwide. YAL.ai’s unique approach centers on an AI-first and privacy-first model built around what the company calls “the world’s most advanced telecom fraud protection system.

SC Capital Partners, a leading Singapore-based real estate investment management firm, has announced the launch of the SC GCC Real Estate Industrial Development Fund (GRID), its first co-sponsored industrial development fund in the UAE.

CapitaLand Investment Limited (CLI), a leading global real asset manager that holds a 40 percent stake in SC Capital Partners, will co-sponsor the Fund.

Sukna Capital, a Riyadh-based alternative investment platform licensed by the Capital Market Authority (CMA), and Partners for Growth (PFG), a global credit manager providing tailored, asset-backed lending solutions to high-growth technology companies, have signed a strategic partnership to deploy up to $50 million of specialty loans for high-potential technology companies and small and medium-sized enterprises (SMEs) across Saudi Arabia and the broader Middle East.

Shomoul Holding, a subsidiary of Kuwait’s Mabanee Co., signed an agreement with Alshaya Group for the latter to invest $150 million in The Avenues-Riyadh. The project includes opening 100 stores across a total leasable area of over 50,000 square meters (sqm). The project includes opening 100 stores across a total leasable area of over 50,000 square meters (sqm).

The Saudi Film Fund has rebranded as Riviera Content and announced two new film investments valued at more than SR32.5 million ($8.7 million). The fund, initially launched with the Cultural Development Fund as lead investor and MEFIC Capital as fund manager, said the investments involve collaborations with major international studios, including Universal Studios and Columbia Pictures.

China’s Ori Group, a leading firm in culture and creativity, announced the opening of its regional headquarters in Saudi Arabia, investing over SR2 billion ($540 million). The move underscores Saudi Arabia’s growing appeal as a destination for international cultural companies and investors, aligning with efforts under Vision 2030 to diversify the economy and build a sustainable cultural ecosystem.

Alamar Foods Co. signed on Sept. 30 an asset purchase agreement to acquire all assets of 29 Domino’s branches located in Makkah and Taif, for SAR 40 million, subject to customary closing adjustments. Under the agreement, it will assume operational and financial control of the acquired branches starting from Oct. 1, noting that the transaction-related costs remain unchanged.

Aydi, the AI-powered platform dedicated to advancing the success and prosperity of growers worldwide, today announced the close of a $7.5 million seed round with funding from COTU Ventures, Daltex and Nuwa Capital with participation from Magrabi Agriculture and Foundation Ventures.