Mubadala-backed alternative asset manager Shorooq launched a USD 200 mn fund backed by the Qatar Investment Authority to target the GCC’s late-stage and pre-IPO companies, Semafor reports. The firm is focusing on fintech infrastructure, software, and AI, backing companies that support regulated or mission-critical activities across the MENA region.

Who pitched in? Other than first-time backer QIA, the fund is also backed by other sovereign and institutional investors from the GCC and Asia. Shorooq is also set to open a Doha office as part of the investment, which brought its assets under management to over USD 1 bn.

The target? Shorooq is keen on fintech infrastructure, AI, software, and business, founding partner Mahmoud Ali said. It is targeting firms that already show promising results but need more financial backing ahead of expansion, as well as ones working in mission critical sectors across MENA.

Why it matters

While seed and Series A funding is widely available, the region lacks the structured capital needed to prepare scale-ups for public markets. In the past, this has forced companies to either sell stakes prematurely or delay growth. An institutional investor-backed fund looks likely to be able to turn early-stage firms into return-yielding IPO candidates.

REMEMBER- Shorooq Partners launched a USD 100 mn global fund alongside G42-backed data analytics firm Presight to back AI ventures worldwide. This vehicle aims to invest in 25-30 AI and deep tech startups, with about 40% of capital reserved for late-stage funding rounds to support scaling firms.

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