What We Do

Venture Capital

Sanabil’s Venture Capital Program aims to develop a diversified portfolio across all stages of venture capital. The program is designed to include direct investments, commitments to funds, and selective co-investments alongside fund managers.

Sanabil in the long run seeks to achieve superior risk-adjusted returns by investing in promising venture capital-backed companies and with top-tier venture fund managers around the globe with emphasis on the U.S., Europe, and China in addition to Saudi Arabia. Sanabil’s investment team is interested in leveraging its global industry network and conducting its own analysis when considering investment opportunities.

Direct investments include leading and participating in equity funding rounds (Series A and beyond) in early stage and high growth companies. Fund investments are intended to be stage-agnostic (i.e., to include seed, early stage, late stage, and growth), industry-agnostic, and geography-agnostic (i.e., to include global, U.S., Europe, and China) while targeting fund managers that have demonstrated persistent outperformance along with high levels of governance, alignment, and transparency.

Private Equity

Funds

Sanabil invests in Buyout strategies in North America, Europe and Emerging Markets. Sanabil targets Mega/Large Buyout funds as well as mid-market Buyout funds and Growth Equity strategies in the lower- to mid-market segments.

Sanabil conducts analysis on the General Partners’ team stability, track record, and performance relative to peers and to public markets. Furthermore, Sanabil looks at value creation attributions, deal sourcing capabilities, and return volatility.

Buyout fund investments typically range from US$50 million to US$250 million, but could go higher in some cases

Secondaries

Part of the Private Equity Program is earmarked for direct secondary purchases of Limited Partners’ interests in private equity funds. Such investments mitigate the J-curve as investments are purchased further along in the life cycle and reduce the negative impact of management fees. This strategy is expected to add value to the portfolio by diversifying the portfolio by vintage year, accelerating distributions, acquiring interests at a net assets value and/or valuation discount, and gaining mid-cycle access to attractive managers.

Opportunities are evaluated based on the quality of the manager and disciplined pricing. Since the portfolio companies are known in a secondary transaction, Sanabil runs a full and detailed valuation exercise of significant underlying companies to determine pricing. Sanabil leverages its extensive global relationships to source direct secondary opportunities. Direct Secondary investments typically range from US$50 million to US$100 million.

Co-investments

Sanabil selectively co-invests in the equity of certain companies alongside current and prospective General Partners. Sanabil is generally industry and geography agnostic in selecting attractive co-investment opportunities and seeks minority positions with commensurate minority protection rights and favorable economics.

The Private Equity team conducts in-depth analysis on the opportunity along with the General Partner. Sanabil is committed to insightful screening, due diligence, analysis, and approvals within consistent commercial timeframes. Co-investments are expected to range from US$25 million to US$100 million.

In addition, as part of the co-investment strategy and/or broader Private Equity Program, Sanabil can leverage its knowledge and experience within Saudi Arabia to be the value added partner of choice to any General Partner, a portfolio company or any international business when they are rolling out their businesses into the Kingdom.

Private Equity

Sanabil’s Private Equity Program aims to develop a diversified portfolio across various geographies, sectors, strategies and vintage years. Program investments include commitments to private equity funds or partnerships, opportunistic acquisitions of secondary interests in private equity funds and selective co-investments alongside General Partners.

Sanabil seeks to achieve superior risk-adjusted returns by investing with top-tier private equity fund managers around the globe and becoming a long term strategic partner. Sanabil targets fund managers that have demonstrated persistent outperformance along with high levels of governance, alignment, and transparency. The Private Equity team leverages its global industry network and conducts its own evaluations when considering investment opportunities. Sanabil is committed to alternative illiquid investments and has allocated a significant portion of its assets to these investments in order to earn the associated illiquidity premium and unique value creation alpha.

Direct Investments

Sanabil Investments focuses on making direct equity investments in private companies and projects. Our goal in this regard is to acquire influential minority stakes with appropriate minority protection rights and board representations to ensure the implementation of our investment thesis and strategy. While our primary objective in making direct investments is to optimize returns, we take other factors into consideration when investing, including the investment’s potential role in contributing to the development of the Saudi economy, the transfer of expertise and technology to the local markets, as well as contribution towards national priorities.

Real Assets

Sanabil’s Real Asset Program provides broad exposure to global real assets, through allocations to multiple sub-asset classes, geographies, and vintage years. Currently, the Real Assets Program focuses on real estate and infrastructure.

Sanabil currently implements its real assets strategy by investing as a limited partner in open-end and closed-end commingled funds, including core and non-core strategies, which are managed by high-quality, best-in-class managers.

Prior to investing in a fund, Sanabil undertakes a comprehensive due diligence exercise aimed at evaluating the key characteristics of a fund, as well as the General Partner managing the fund. Such due diligence includes analysis of historical performance, performance attribution, market opportunity, investment thesis, key investment terms, organizational structure, governance, transparency, and alignment of interest.

Global Real Assets are included in Sanabil’s overall portfolio in order to:

To deliver attractive risk-adjusted returns through income and appreciation.
Dampen overall portfolio volatility due to low or negative correlations with traditional asset classes.
Serve as a partial hedge against inflation in the long run.

Real Assets fund investments typically range from US$30 million to US$60 million per fund.

Hedge Funds

Sanabil’s Hedge Fund Strategy provides diversified exposure to global hedge funds and alternative strategies through allocations to multiple sub-asset classes. The Strategy seeks to add alpha through tactical positioning across the capital structure and through manager/fund selection. The Strategy includes exposure to directional (e.g., equity long/short and credit) and to non-directional strategies (e.g., global macro and event-driven).

The Strategy is diversified by geography, industry and investment style in both Global Developed Markets and Global Emerging Markets.

Hedge Funds and alternative assets are included as part of Sanabil’s overall investment portfolio to fulfil the following roles:

To deliver attractive risk-adjusted returns by accessing specialized strategies that should earn equity-like returns with lower volatility than equity markets.
To provide diversification and low correlations with other asset classes in Sanabil’s investable universe.

Public Equity

Sanabil’s Public Equity Strategy provides broad exposure to global equity securities. The Strategy seeks to add alpha through tactical positioning across sub-asset classes and through external manager selection. The Strategy is diversified by geography, industry and investment style, and comprised of long-only and long-biased strategies in both Global Developed Markets and Global Emerging Markets. Public Equity assets are included as part of Sanabil’s overall investment portfolio to fulfil the following roles:

To deliver attractive risk-adjusted returns through dividend income and capital appreciation.
To provide diversification and low correlations with other asset classes in Sanabil’s investable universe.