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Derayah Financial has announced a binding investment commitment of SAR 244 million ($65 million) to the HOF Capital Strategic Opportunities Fund II (Cayman). The Saudi financial services provider has already paid 40% of the total amount, equivalent to SAR 97.5 million ($26 million), with the remaining 60% scheduled for deployment over the next 24 months. The transaction is financed through Derayah's internal liquidity and available credit lines.
The targeted fund focuses on building a focused portfolio of around 15 high-growth companies operating in artificial intelligence (AI), enterprise software, and advanced technologies. The underlying fund aims for a target size of $1.2 billion and a maximum cap of $1.5 billion. Derayah also plans to launch its own multi-strategy AI and technology fund, pending regulatory approvals, into which this investment will eventually be transferred to bolster its asset management ecosystem.
This capital allocation highlights the expanding appetite of Gulf institutional investors for global technology assets and private market funds. Derayah expects the initiative to yield positive financial returns by growing its asset management division and generating subscription and management fees upon launching its targeted public and private offerings.
