- The first-of-its-kind partnership aligns with PIF’s efforts to foster further growth in the Saudi capital markets ecosystem and international investment management sector.
- Leveraging its industry-leading global operating platform and capabilities, BlackRock develops investment strategies across asset classes for the Saudi market, including both public and private markets, managed by a Riyadh-based investment team. We are planning to launch it.
- PIF plans to anchor the platform with an investment of up to $5 billion and raise additional funds from domestic and international investors
BlackRock Saudi Arabia and the Public Investment Fund (PIF) announced the signing of a memorandum of understanding (MoU) under which BlackRock will establish a multi-asset class investment platform based in Riyadh. The plan will be supported by an initial investment mandate of up to $5 billion from the PIF, subject to the achievement of milestones agreed between the parties.
BlackRock Saudi Arabia and PIF have announced their intention to establish BlackRock Riyadh Investment Management (BRIM), which will encompass investment strategies across a variety of asset classes, all managed by a portfolio management team based in Riyadh. It is expected that they will be managed and supported by. BlackRock’s industry-leading global asset management platform.
PIF plays a leading role in driving Saudi Arabia’s economic transformation and diversification, as well as driving the global economy and shaping the future of industry. Since 2017, PIF has established 94 new companies locally, creating over 644,000 direct and indirect jobs.
As Saudi Arabia continues its economic transformation, BRIM aims to support foreign institutional investment in Saudi Arabia and further strengthen the Saudi wealth management industry. Expand local capital markets while increasing investor diversification across asset classes. Facilitate knowledge sharing and development of Saudi-based asset management talent. This complements a series of initiatives by PIF to foster further growth of the Saudi capital markets ecosystem and enable the growth of the Saudi-based international investment management sector.
Larry Fink, Chairman and CEO of BlackRock, said:
“One of BlackRock’s most important contributions to the countries in which we operate is to bring our knowledge and understanding of capital markets to foster future economic development. Building on the deep partnership we have cultivated over many years, we are excited to launch a first-of-its-kind international investment management platform in Saudi Arabia.
“The continued growth of Saudi capital markets and the diversification of the financial sector will contribute to the future prosperity of its people, the competitiveness of its businesses, and the resilience of its economy.” We are pleased to be able to offer investors from around the world the opportunity to participate in this exciting long-term opportunity.”
Yazeed A. Al Humid, PIF Deputy Governor and Head of MENA Investments, said:
“PIF’s relationship with BlackRock is well-established and growing. Partnering with the world’s leading international companies and asset managers like BlackRock is part of PIF’s growth strategy. The ongoing agreement represents a step forward in PIF’s efforts to make the Saudi investment and wealth management market more internationally diversified and more dynamic.”
BRIM will be fully integrated with BlackRock’s investment capabilities and operating platform, benefiting from global market expertise, thought leadership and technology, while facilitating knowledge sharing and further strengthening local investment capabilities. BlackRock’s Financial Markets Advisory Group provides a wide range of capital markets, risk, and analytics advice to public and financial institutions around the world, and works closely with efforts to deepen capital markets and strengthen market structures. is intended to support.
BRIM plans to invest in infrastructure support and investment research capabilities to increase local insight through local recruitment and redeployment of experienced investment professionals. This includes the launch of the BRIM Graduate Development Program, the establishment of a partnership between the PIF Academy and the BlackRock Education Academy, and industry training and development events.
The signed non-binding Memorandum of Understanding is subject to meeting certain requirements, obtaining regulatory approvals and achieving specified milestones.
In October 2023, PIF launched the Manager’s Gate Platform and Portfolio Management Development Program during the PIF Asset Management Forum. Managers’ Gate includes a digital platform for collaboration between PIFs and external fund managers.
Source: PIF
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