King & Spalding has advised asset management companies on the launch of funds up to $500 million in Saudi Arabia.
The firm, which has Middle East offices in Dubai, Abu Dhabi and Riyadh, acted as counsel to Arcapita on the launch of a logistics fund in Saudi Arabia that successfully raised SAR 1.8 billion ($500 million).
The ARC KSA Logistics Fund III, managed by Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, received investment from GCC sovereign wealth funds and other significant institutional investors.
With the support of King & Spalding, Arcapita obtained an asset management license from the Saudi Arabia Capital Market Authority (CMA), the firm said.
Aligned with Saudi Arabia’s Vision 2030 and its Global Supply Chain Resilience Initiative, the fund aims to make the country a preferred location for leading global industrial companies.
It is targeting investments primarily in the manufacturing and warehousing sectors with a focus on Riyadh, Jeddah, and the Eastern Province. The fund is also expected to follow a build-to-suit approach, whereby properties will be developed with long-term off-take arrangements with tenants.
The King & Spalding team advising Arcapita included Middle East managing partner Nabil Issa and partner James Stull, who specialise in corporate, finance and investments in the firm’s Dubai office.
King & Spalding also advised Alkhabeer Capital on the establishment of the Alkhabeer Diversified Income Traded Fund 2030 that is to be listed on the Saudi Exchange. The fund is targeting to raise SAR 300 million (US$80 million).
The fund is only the third closed-ended fund to be established in Saudi Arabia and listed and traded on the Saudi Exchange, the firm said.
Operating on a Shari’ah-compliant basis, the fund seeks to provide regular income and capital appreciation to its investors by investing in a diversified portfolio of underlying assets including Sukuk, trade finance and leasing arrangements, structured products and Murabaha transactions.
Dubai partner Stull was part of the King & Spalding team advising Alkhabeer Capital on the fund establishment and investment structuring work.
