SR_SA_05 - V3.mp4

Back

Or filter by your interest

Browse all our content

SuperReturn

Unlock all the content with only {{price}}

SR_SA_05 - V3 (2).vtt

ENGLISH

{{00:00:17}}
Riyad Capital has been the first
actually asset manager to establish

{{00:00:21}}
the VC funds regulated by the CMA.

{{00:00:25}}
And we have been continuing on investing
in this route amongst of course other

{{00:00:30}}
asset classes that we're doing and
also beefing up our allocation and

{{00:00:34}}
private equity At the same time or
sometimes actually we take it from

{{00:00:38}}
a VC into a publicly traded company,
which we have done Recently in one

{{00:00:43}}
of the technology companies that we
invested in 2016 we are investing in an

{{00:00:49}}
approach that is high conviction with
recurring revenue, mainly in defensive

{{00:00:56}}
area like education, healthcare,
and of course, technology, including

{{00:01:03}}
Fintech.

{{00:01:09}}
It's, an environment, an ecosystem
that we have been witnessing in

{{00:01:14}}
Saudi Arabia that's actually quite
supportive to take the companies public.

{{00:01:20}}
We still have a limited
access to secondary market,

{{00:01:25}}
especially on the mid-cap side.

{{00:01:26}}
However, we want to make sure
that we invest  quite defensive

{{00:01:32}}
in a way in healthcare, education,
technology, and consumer goods.

{{00:01:38}}
With recurring revenues that
actually brings more comfort

{{00:01:42}}
once we have  the exit story

{{00:01:55}}
on a private equity, we see that tourism
and hospitality both actually on the

{{00:02:01}}
side of the real estate side and also
on the operation sides, which we do both

{{00:02:06}}
actually this is, I think I believe this
is part of the Vision 2030 where tourism

{{00:02:12}}
now is jumped  more from really low
ranking 10 years ago to be the number

{{00:02:21}}
one right after oil and gas revenue as a
contributor to the GDP in Saudi Arabia.

{{00:02:26}}
So we're investing in that on the
operation side on the, but also in

{{00:02:30}}
technology, we have quite a young and
big population in Saudi well educated

{{00:02:37}}
that we are embarking on investing in
their needs in technology and fintech,

{{00:02:43}}
for example, we are quite, aggressive,
I would say, and investing in those.

{{00:02:49}}
One of the, funds that we launched
recently, this, Venture1957

{{00:02:57}}
collaboration with the Riyadh Bank
has a single unit holder in it.

{{00:03:01}}
So we want to make sure that we
incubate and also grow businesses.

{{00:03:08}}
From early stages into later
stages and embedding them into our

{{00:03:14}}
business and operations if possible.

{{00:03:17}}
Otherwise, we can also venture
them into other venues of exits.

{{00:03:31}}
I think the biggest challenge
that we're seeing is sourcing

{{00:03:35}}
quality deals in the market.

{{00:03:37}}
There's a scarcity of good deals,
that's meeting our criteria at least.

{{00:03:44}}
The second is because of the scarcity
of the deals, there's a valuation issue

{{00:03:50}}
that could actually reach a level of
valuation that's probably difficult

{{00:03:54}}
to defend for investors and to deploy.

{{00:03:58}}
So we're quite active in striking
the balance of a good deal and

{{00:04:01}}
so it takes time to do that.

{{00:04:03}}
Third the mindset of a business on
family oriented or run businesses

{{00:04:09}}
that we see in Saudi Arabia.

{{00:04:10}}
Which is quite normal actually in the,
region and the GCC, especially those

{{00:04:16}}
businesses, especially in private equity
side, they're founded by family members.

{{00:04:21}}
So the first and second generations
probably are into, the decision making

{{00:04:27}}
and control, trying to embed and try
to convince optimizing the business

{{00:04:35}}
from a financial and operational side.

{{00:04:38}}
And we want to make sure
that the governance side is

{{00:04:41}}
embedded and also beefed up.

{{00:04:43}}
In a way that is making it ready to
be potentially listed or at least

{{00:04:49}}
for a strategic buyer to buy it.

{{00:05:00}}
Basically, it's the guiding star
for us, the the north star for Saudi

{{00:05:06}}
businesses and that we're making
sure that we're aligned in it.

{{00:05:12}}
Aligning with, the vision and the
sectors that are actually being targeted.

{{00:05:18}}
Potentially.

{{00:05:18}}
So that's actually gives us
clarity where things are.

{{00:05:21}}
And also the ecosystem and regulations
are aligned in that make it possible to

{{00:05:30}}
achieve those goals from the vision point
of view, but also from the business to

{{00:05:33}}
be profitable and sustainable as well.

{{00:05:36}}
So we see more of these,

{{00:05:42}}
opportunities, especially in
real estate and and hospitality.

{{00:05:46}}
For example, we have the World Cup in 2034
and the Expo 2030 and  lots of events.

{{00:05:54}}
For example,  SuperReturn will
now be a recurring event which

{{00:05:58}}
was announced earlier today.

Riyad Capital has been the first
actually asset manager to establish

And we have been continuing on investing
in this route amongst of course other

asset classes that we're doing and
also beefing up our allocation and

private equity At the same time or
sometimes actually we take it from

a VC into a publicly traded company,
which we have done Recently in one

of the technology companies that we
invested in 2016 we are investing in an

approach that is high conviction with
recurring revenue, mainly in defensive

area like education, healthcare,
and of course, technology, including

It's, an environment, an ecosystem
that we have been witnessing in

Saudi Arabia that's actually quite
supportive to take the companies public.

We still have a limited
access to secondary market,

However, we want to make sure
that we invest  quite defensive

in a way in healthcare, education,
technology, and consumer goods.

With recurring revenues that
actually brings more comfort

on a private equity, we see that tourism
and hospitality both actually on the

side of the real estate side and also
on the operation sides, which we do both

actually this is, I think I believe this
is part of the Vision 2030 where tourism

now is jumped  more from really low
ranking 10 years ago to be the number

one right after oil and gas revenue as a
contributor to the GDP in Saudi Arabia.

So we're investing in that on the
operation side on the, but also in

technology, we have quite a young and
big population in Saudi well educated

that we are embarking on investing in
their needs in technology and fintech,

for example, we are quite, aggressive,
I would say, and investing in those.

One of the, funds that we launched
recently, this, Venture1957

collaboration with the Riyadh Bank
has a single unit holder in it.

So we want to make sure that we
incubate and also grow businesses.

From early stages into later
stages and embedding them into our

Otherwise, we can also venture
them into other venues of exits.

I think the biggest challenge
that we're seeing is sourcing

There's a scarcity of good deals,
that's meeting our criteria at least.

The second is because of the scarcity
of the deals, there's a valuation issue

that could actually reach a level of
valuation that's probably difficult

So we're quite active in striking
the balance of a good deal and

Third the mindset of a business on
family oriented or run businesses

Which is quite normal actually in the,
region and the GCC, especially those

businesses, especially in private equity
side, they're founded by family members.

So the first and second generations
probably are into, the decision making

and control, trying to embed and try
to convince optimizing the business

And we want to make sure
that the governance side is

In a way that is making it ready to
be potentially listed or at least

Basically, it's the guiding star
for us, the the north star for Saudi

businesses and that we're making
sure that we're aligned in it.

Aligning with, the vision and the
sectors that are actually being targeted.

So that's actually gives us
clarity where things are.

And also the ecosystem and regulations
are aligned in that make it possible to

achieve those goals from the vision point
of view, but also from the business to

opportunities, especially in
real estate and and hospitality.

For example, we have the World Cup in 2034
and the Expo 2030 and  lots of events.