PIF to collaborate with US asset managers: The Public Investment Fund (PIF) has entered into non-binding agreements with US asset managers Franklin Templeton and Neuberger Berman to invest bns of USDs into Saudi Arabia’s capital markets.

#1- Franklin Templeton will collaborate with PIF to invest up to USD 5 bn in Saudi financial markets under the non-binding MoU, Al Arabiya reports.

The partnership could include Saudi equities and fixed-income strategies in both public and private markets, subject to regulatory approvals and performance milestones. Franklin Templeton also aims to introduce knowledge-sharing programs and initiatives

REMEMBER- Franklin Templeton secured Capital Market Authority licenses in March 2024 to conduct investment management, fund operations, and securities advisory activities in the Kingdom.

Franklin Templeton has been active during the summit: Tadawul-listed Hassana Investment Company also signed a USD 150 mn MoU with the US-based asset manager to explore an investment partnership focused on the private credit market in the Kingdom, according to a press release.

The rationale: The pair aims to support and expand access to bank loans for mid-sized companies, providing additional liquidity to a sector receiving less than 10% of total facilities while employing almost 50% of the Saudi workforce, the statement said.

#2- Neuberger Berman signed a non-binding MoU with PIF, to support up to USD 6 bn in investments in local and Middle Eastern capital markets, according to its press release.

The firm — which manages USD 515 bn in assets — also plans to launch a Riyadh-based multi-asset investment platform, covering equities, fixed income, and private markets, pending regulatory approval.

#3- The PIF inked a MoU with global infrastructure investor I Squared Capital to launch a Middle East-dedicated infrastructure investment strategy, according to a press release. The strategy aims at boosting regional infrastructure and attracting foreign investment to the Kingdom.

ALSO- I Squared signed another non-binding MoU with the Arab Energy Fund (TAEF) to develop an energy-focused strategy aimed at expanding energy infrastructure to support regional decarbonization efforts, according to a separate statement. The agreements come amid I Squared’s plan to open a Riyadh office in 2025, as part of a broader regional expansion.

Reuters also had the story.

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