The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, is coming in as the anchor limited partner in a joint infrastructure fund set up by Bahrain’s Investcorp and the UK’s Aberdeen Standard Investments.
The PIF will commit up to 20% of the total fund size ahead of its first closing, Investcorp said in a statement.
Investcorp didn’t specify the size of the fund or the PIF’s commitment. However, the Financial Times reported the fund could raise up to $800 million and make its first close at $250 million. If this is indeed true, the PIF’s commitment could be of the order of $160 million at the fund’s final close.
The regional infrastructure fund housed under Aberdeen Standard Investcorp Infrastructure Partners (ASIIP) has also received a commitment of $90 million from the Asian Infrastructure Investment Bank.
Manama-based Investcorp also said that other global institutional investors, including pension funds, insurance companies, endowments, family offices and private clients are likely to join the fund.
The ASIIP fund will invest in “sustainable core infrastructure projects” across the Gulf Cooperation Council and the wider Middle East and North Africa regions.
In May, Investcorp and Aberdeen had appointed former UK secretary of state for defence, Sir Micheal Fallon, as the chairman of the newly formed ASIIP.
The joint fund aims to invest in healthcare, education, water, mobility and digital infrastructure that will “have a positive impact” on communities and future generations, Investcorp said.
The PIF is the one of the world’s largest wealth funds with assets under management of $430 billion, according to the Sovereign Wealth Fund Institute.
Investcorp was set up in 1982 and has evolved into a global alternative investment manager over the past four decades with $35.4 billion in assets under management.