Saudi alts manager expands into Australian private credit

Sidra Capital, a Saudi Arabia-based alternative investments manager, has launched a new private credit investment fund focused on Australia’s mining and energy sector.

The Sharia-compliant Sidra Asia Pacific Private Investments Sub-Fund I will be domiciled in Singapore and managed by its local team.

The multi-asset, low-volatility fund invests US$15 million (AU$22.5 million) in Australia’s mining sector, offering investors, Sidra says, a “secured and stable revenue stream over a three-year period, underpinned by strong tailwind in the Australian mining sector”.

The fund targets a return of 9.75% per annum and is secured by a fleet of mining equipment.

Sidra Capital vice chairman Ghassan Soufi said the newly launched fund provides private investors with access to “a well-developed and refined strategy”.

He added that the asset manager remains “cautiously optimistic about opportunities in Asia Pacific, including Indonesia, Singapore, and Australia, which are set to benefit from shifting global supply chains amidst current global economic headwinds”.

“Specifically, Australia presents a compelling market with high-yield opportunities, supported by a well-established legal framework and a strong investment ecosystem comprising both local and international institutional and private investors.”

Azlan Firman, Sidra’s head of investments APAC, added: “We continue to refine our strategies to adapt to the ongoing developments in global markets, and we consistently seek to identify private credit opportunities that arise from current economic shifts.

“These efforts ensure we maintain a competitive edge and deliver real value to our investors.”

Founded in 2009 and headquartered in Jeddah, Saudi Arabia, Sidra Capital is a Shariah-compliant asset manager focuses on alternative asset classes, including income-generating global real estate, private finance, and private equity.

Sidra oversees more than SAR16 billion (AU$7.5 billion) in assets and SAR11.5 billion (AU$4.8 billion) in real estate globally.