Jadwa Investment launches mezzanine financing fund

Jadwa Investment launches mezzanine financing fund

RIYADH “” Jadwa Investment, Saudi Arabia's leading investment management and advisory firm, announced Monday the launch of its first closed-ended mezzanine financing fund. The new Shariah-compliant offering is part of Jadwa's ongoing commitment to expanding clients' access to new asset classes.The fund will provide Shariah-compliant mezzanine financing to high-quality companies through a commodity murabaha arrangement, with the aim of generating a stream of income distributions for the fund's investors.Through this fund, Jadwa will offer Shariah-compliant mezzanine financing to ADES Investments Holding Ltd., a DIFC-based holding company.Tariq Al-Sudairy, managing director and CEO of Jadwa Investment, commented: "We are delighted to launch our first mezzanine financing fund as part of our commitment to enable clients to access a broader universe of Shariah-compliant investments across asset classes and geographies."We believe there are compelling opportunities in the mezzanine financing space in the region that provide investors attractive annual yield and double-digit returns with a moderate risk profile.“He added: "Despite the challenging circumstances of the pandemic, Jadwa has continued to actively originate and execute attractive investment opportunities