Shorooq Partners launches a new $100 million venture debt fund, hits first close

Abu Dhabi-based Shorooq Partners has launched a new $100 million venture debt fund and hit its first close, the firm announced on Thursday. The details of how much the firm has raised in the first close were not disclosed. It is Shorooq’s second debt fund. The first was launched over three years ago in partnership with Korean venture capital and private equity firm IMM Investment Global (IMMG), and has been fully deployed now, with investments in firms like Pure Harvest and Tamara.

The Saudi fintech Tamara announced securing $250 million in debt financing in November last year, $50 million of which came from Shorooq, and the rest from Goldman Sachs.

For its second ‘private credit’ fund, Shorooq has partnered again with Korean firm, which is joining the fund as a minority partner, according to a statement by Abu Dhabi-based investor.

The statement by Shorooq noted that the ventures their first debt fund invested in have “emerged as leaders in their respective sectors, underscoring the impact of Shorooq Partners’ and IMMG’s credit facility in fueling innovation and driving economic growth.”

It also hinted that the fund will invest in Series A+ companies operating in the manufacturing, financing and software services space, with an average ticket size of $10 million+.

Founded in 2017 by Shane Shin and Mahmoud Adi, Shorooq Partners started as a VC firm and now positions itself as an alternative investment manager, with multiple venture capital and debt funds that invest in startups across the region. Some of its notable investments other than Pure Harvest and Tamara, include Nymcard, Sarwa, Lean Technologies, Trukker, and Lendo.

Shane Shin, a Founding Partner at Shorooq Partners, commenting on the launch and first close said, “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. Amidst this landscape, we champion the pivotal role of non-dilutive funding, offering a sophisticated alternative to traditional equity-based approaches.

“For mature companies and founders who have navigated the complexities of fundraising and attained the milestone of a completed Series A round, our tailored solutions provide a compelling avenue for sustained growth. With a focus on recurring revenue, robust cash flow positions, and tangible assets, our targeted approach ensures alignment with our strategic and institutional investors,” he added.

Nathan Kwon, a Principal at Shorooq Partners, who is leading this fund, said, “Last year we saw over $400mm of dealflow after screening for companies that did not qualify for credit. This surge in deaflow underscores a robust interest towards the fund’s mission to foster scalable growth in the companies we invest in.”

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