Saudi Arabia's Sidra Capital Ventures into Australian Private Credit Sector
Saudi Arabia's Sidra Capital Ventures into Australian Private Credit Sector
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Sidra Capital, a prominent alternative investments manager from Saudi Arabia, has made headlines with the launch of a new private credit investment fund targeting Australia's thriving mining and energy industries.
The Sharia-compliant fund, known as the Sidra Asia Pacific Private Investments Sub-Fund I, will be headquartered in Singapore and managed by Sidra's local team there.
This multi-asset fund aims to deliver low volatility with a significant investment of US$15 million (approximately AU$22.5 million) dedicated to Australia's mining sector. Sidra Capital has highlighted that the fund promises a secure and reliable revenue stream over a three-year duration, bolstered by robust trends within the Australian mining industry. The fund is structured to yield an annual return of 9.75%, secured by a fleet of mining equipment.
According to Ghassan Soufi, Sidra Capital's vice chairman, this newly established fund offers private investors the chance to engage with a sophisticated investment strategy. Soufi mentions that the firm is cautiously positive about the investment prospects within the Asia Pacific region, including Australia, Indonesia, and Singapore, given the shifts in global supply chains amid current economic challenges.
As Soufi elaborates, Australia in particular stands out as an appealing market due to its high-yield prospects, supported by a robust legal and investment framework. This environment attracts a diverse mix of investors, both domestic and international, creating opportunities within the private credit space.
Azlan Firman, leading Sidra's investment efforts in the Asia Pacific, states that the asset manager is continuously refining its strategies to keep pace with global market developments. This agility allows Sidra to capitalize on emerging private credit prospects spurred by changes in the economic landscape, thus ensuring they provide substantial value to their investors.
Established in 2009 and headquartered in Jeddah, Saudi Arabia, Sidra Capital is committed to Sharia compliance and specializes in alternative asset classes. These include global real estate that generates income, private finance, and private equity. Currently, Sidra manages over SAR16 billion (approximately AU$7.5 billion) in assets, alongside SAR11.5 billion (AU$4.8 billion) invested in real estate internationally.
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Escrow: An arrangement in which a third party temporarily holds money or property until a particular condition has been met.