Brookfield raises $2 billion for Middle East fund from investors including Saudi Arabia's PIF

Brookfield BN.TO has raised around $2 billion from strategic anchor investors, including Saudi Arabia's sovereign wealth fund, for a private equity fund that will invest in companies in the kingdom and wider Middle East, the global investment firm said on Monday.

The Brookfield Middle East Partners (BMEP) fund aims to allocate 50% of its investments in Saudi Arabia, the Canadian firm said in a statement, adding that the entity will pursue deal across sectors including financial, industrials and technology.

Brookfield, which has more than $1 trillion in assets under management, is committing $500 million to the fund.

In recent years, global private equity firms have boosted their presence and invested in the Gulf region, attracted by proximity to some of the world's largest sovereign wealth funds and a growing pipeline of regional deals in areas such as infrastructure.

"We see a compelling opportunity to partner with businesses across the region and position them for long-term growth," said Brookfield's CEO Bruce Flatt, mentioning "global confidence and strong demand for private equity opportunities in Saudi Arabia and the region".

Brookfield is part of a consortium of global investors that on Saturday announced a $16 billion deal with Kuwait Petroleum Corporation (KPC) for a lease and leaseback of the energy company's crude oil pipeline network, defying concerns around the impact of the Iran war.

"Our partnership with Brookfield is designed to help anchor international private equity into Saudi Arabia and the region. It will also accelerate deal flow while continuing to bring world-class expertise to the local capital market ecosystem," said Yazeed A. Al-Humied, PIF's deputy governor and head of MENA Investments.