Jada Fund of Funds, the Public Investment Fund's private markets arm, is expanding its private credit allocation as Gulf investors continue backing the asset class despite Western market turbulence. The move comes as local banks slow lending growth, creating opportunities for alternative financing channels.

Jada recently partnered with India-based Stride Ventures, which plans to deploy $200 million into Saudi Arabia over the next two years. The mandate focuses on supporting small- and medium-sized enterprises, with CEO Bandr Alhomaly calling private credit "a priority asset class" for the fund. Launched in 2018 with $1 billion in capital, Jada has already deployed nearly $600 million across approximately 50 funds.

The strategy contrasts with recent turbulence in the US private credit market, where valuation and asset quality concerns have intensified. However, Gulf investors argue the regional market remains nascent and structurally different. Jada-backed Ruya Partners is currently raising $400 million for a Middle East-focused private credit strategy, while sovereign peers including Qatar Investment Authority and Mubadala Investment Company have also expanded exposure to the asset class.