Private Equity

Private equity and venture capital (PE/VC) are relatively new in the Saudi Arabian market

There were basically no PE/VC funds and infrastructure in Saudi Arabia in the beginning of 2010s and at present,  PE/VC activity remains at an early stage of development however, it is a fast-growing sector that is further accelerating – inspired by Saudi Vision 2030 and fueled by the collective efforts and commitments of the various stakeholders.

Private equity relates to the investment on private businesses for profit or returns. On this note, private equity lawyers play a vital role when it comes to assisting the private equity firm or individual in negotiating the terms on how to achieve a smooth cash flow, when it comes to the buying and selling of these investments. In Venture Capital, investors fund a startup company with high growth potential and can generate a huge return of investment.

The main areas of operations of PE/VC firms also change rapidly. At present, the top areas of operation of PE firms are as follows, acquisition of significant stakes in family-owned business, partnering with  international businesses, acquisition of minority stakes in blue-chip companies with initial public offering prospects and investments in small and medium-sized enterprises. Although, challenges in this type of business still occur, primarily,is the predominance of family-owned businesses, which are not ready to give in their control to the foreign entities. As a result, it’s becoming significantly tougher for private equity firms in Saudi Arabia to tap into this particular market.

At Mohammed Al Muzayen Law Firm, we understand how complex such investments could be; and with that, we were able to build an unparalleled practice in providing sound and strategic legal advice on all aspects of private equity and venture capital deals, ensuring that our clients’ businesses could achieve their goals lawfully and significantly easier. We aim to help our clients to earn their profit while ensuring compliance and the integrity of their business structure. In addition, we commit to fully understanding the intricacies of the business so as to provide solutions to the challenges that you might face when you decide to tap into the Saudi Market for such investments.