Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyBrookfield raises US$2 billion for Middle East fund backed by PIFThe new fund arrives as private equity searches for pockets of growth amid subdued dealmaking in the WestAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.For Brookfield, the US$2 billion first close provides fresh firepower to capitalize on an expanding pipeline of Middle Eastern deals. Photo by Peter J. Thompson/PostmediaBrookfield Asset Management Ltd. has raised about US$2 billion for a Middle East-focused vehicle backed by Saudi Arabia’s wealth fund even as the region grapples with the Iran war.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe investment firm is committing US$500 million to the private equity fund, while a group of strategic investors comprising the Public Investment Fund and other global and regional institutional partners contributed the remainder, according to a statement seen by Bloomberg News.The fund will pursue buyout and growth opportunities across the Middle East in sectors including financials, consumer services and technology, with a target of allocating 50 per cent of its investments to Saudi Arabia.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againDeep-pocketed sovereign wealth funds and government-backed investors across the Gulf have continued pursuing deals even after the United States-Iran war started in February, while global firms have signalled their commitment to the region.On Saturday, Brookfield, alongside Blackstone Inc. and KKR & Co., agreed to a US$16 billion infrastructure partnership involving Kuwait’s oil-export pipelines. Blackstone also announced the opening of an office in Kuwait, its second in the six-member Gulf Cooperation Council.The first close of the Brookfield Middle East Partners fund comes amid a lull in the regional conflict after the U.S. paused its almost two-week run of strikes against Iran, while the Islamic Republic signalled it was refraining from retaliation and held talks with Oman over the Strait of Hormuz.The successful first close marks another step in Brookfield’s rise as one of the largest foreign investors in the region. It oversees roughly US$16 billion of assets in the Middle East across private equity, real estate and infrastructure, and has steadily expanded its presence as governments accelerate economic diversification programs.The fundraising also underscores Saudi Arabia’s evolving approach to deploying the financial muscle of the PIF. While the nearly US$1 trillion wealth fund has long invested tens of billions of dollars with global asset managers overseas, it is increasingly using those relationships to channel international capital into the domestic economy.The partnership with Brookfield will help anchor international private equity in Saudi Arabia and the broader region, Yazeed Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, said in the statement. “It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem.”The new fund also arrives as private equity firms search for pockets of growth amid subdued dealmaking in North America and Europe, where elevated borrowing costs and geopolitical uncertainty have weighed on transactions.For Brookfield, the US$2 billion first close provides fresh firepower to capitalize on an expanding pipeline of Middle Eastern deals. “We see a compelling opportunity to partner with businesses across the region and position them for long-term growth,” Brookfield Corp. chief executive Bruce Flatt said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.