Abu Dhabi, UAE: Shorooq Partners, an investment firm based in Abu Dhabi, announced the launch and first close of its new $100 million venture debt fund on Thursday. While the exact amount raised in the first close has not been disclosed, this marks the firm’s second debt fund. The first, launched over three years ago in collaboration with Korean venture capital and private equity firm IMM Investment Global (IMMG), has now been fully deployed with investments in companies such as Pure Harvest and Tamara.
Notably, Saudi fintech firm Tamara secured $250 million in debt financing in November last year, with Shorooq contributing $50 million and the remainder provided by Goldman Sachs.
For the second private credit fund, Shorooq has once again partnered with IMMG, which will join as a minority partner. Shorooq’s statement highlighted that the ventures backed by their initial debt fund have emerged as leaders in their respective sectors, demonstrating the significant impact of the credit facility in fostering innovation and economic growth.
The new fund will target Series A+ companies operating in manufacturing, financing, and software services, with an average investment size exceeding $10 million.
Founded in 2017 by Shane Shin and Mahmoud Adi, Shorooq Partners began as a venture capital firm and has since evolved into an alternative investment manager. The firm manages multiple venture capital and debt funds, investing in startups across the region. Besides Pure Harvest and Tamara, Shorooq’s portfolio includes notable investments in Nymcard, Sarwa, Lean Technologies, Trukker, and Lendo.
Shane Shin, a Founding Partner at Shorooq Partners, emphasized the growing importance of non-dilutive financing in the MENA region. “It’s imperative to recognize the nuanced advantages of non-dilutive financing, particularly within the MENA region where debt financing among founders is steadily gaining momentum,” Shin said. He highlighted the benefits of non-dilutive funding as a sophisticated alternative to traditional equity-based approaches, particularly for mature companies that have completed a Series A round.
Nathan Kwon, a Principal at Shorooq Partners leading the new fund, noted the significant interest in the fund’s mission. “Last year we saw over $400 million of deal flow after screening for companies that did not qualify for credit. This surge in deal flow underscores a robust interest towards the fund’s mission to foster scalable growth in the companies we invest in,” Kwon stated.
With this new fund, Shorooq Partners aims to continue supporting the growth of innovative companies in the region, leveraging non-dilutive financing to drive sustainable expansion and economic development.
