MENA – Shorooq Partners, the alternative investment manager across the Middle East and North Africa, has announced the first close of its US$100 million second private credit fund.
The fund is launched in collaboration with IMM Investment Global, an arm of IMM Investment, a private equity and venture capital firm in Korea with over US$6 billion in assets under management. IMM Investment Global joins the fund as a minority partner.
“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,” said Shane Shin, founding partner at Shorooq Partners.
“Amidst this landscape, we champion the pivotal role of non-dilutive funding, offering a sophisticated alternative to traditional equity-based approaches.”
Shane said they have tailored solutions to provide compelling avenues for sustained growth for mature companies and founders who have navigated the complexities of fundraising and attained the milestone of a completed Series A round.
“Focusing on recurring revenue, robust cash flow positions, and tangible assets, our targeted approach ensures alignment with our strategic and institutional investors,” Shane added.
“As the MENA region continues its ascent as a hub of entrepreneurial dynamism, discerning founders recognize the imperative of integrating non-dilutive financing into their fundraising calculus, positioning themselves not just for growth, but for enduring success amidst evolving market dynamics.”
Nathan Kwon, principal at Shorooq Partners, highlighted that in 2023, they saw over US$400 million of deal flow after screening for companies that did not qualify for credit.
“This surge in deal flow underscores a robust interest towards the fund’s mission to foster scalable growth in the companies we invest in,” he added.
“With an average ticket size of US$10 million, we are looking for companies in manufacturing, industrials, financing, and software services seeking to secure capital for the next stage in their journey.”
Earlier this year, Shorooq Partners led a US$4 million Series A equity round in AI startup DXwand to power its regional expansion and accelerate research and development efforts.
The funding also saw participation from an existing investor, the Dubai Future District Fund.
The investment will enable DXwand to expand further in the region and accelerate its research and development efforts in LLM, knowledge mining, and retrieval augmented generation (RAG), solidifying its position as a dominant force in generative AI and knowledge mining within the region.
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