Tel Aviv-based global fund manager Liquidity Capital and Dubai-based Vault Investments have announced an agreement to form a joint $100M Venture Debt Investment fund based in Dubai.
The new fund will deploy debt financing funding aimed at fueling technology financing in the Middle East, North Africa and Europe, and will leverage technology already in use by Liquidity in that company’s Asia-Pacific and US investments. As part of the partnership, Liquidity Capital and Vault investment will open offices in Dubai, to more effectively locate potential investments in the region.
“The United Arab Emirates, the Gulf Cooperation Council countries and the Middle East as a whole are overflowing with technology,” said Sultan Ali Lootah of Vault Investments. “The partnership between Vault Investments and Liquidity Capital will create new growth in the region, and the facilities and services we provide will be a positive anchor for entrepreneurs. We believe that our partnership will provide success in the future through our combined leadership in Dubai.”
The joint venture marks a step forward in the rapidly solidifying relationships that have emerged between Israel and the United Arab Emirates and following the recent peace agreements between those countries. Together, Liquidity Capital and Vault Investments will better leverage the region’s deep technological know-how and capital to unlock business opportunities for Middle Eastern startups and growth companies – enabling them to become true global players.
Ron Daniel, CEO and Founder of Liquidity Capital noted “Beyond the personal excitement by this first of its kind fund, and the wonderful relationship with Sultan Lootah of Vault Investments and his team, I strongly believe the new fund is a game-changer in both the availability of non-dilutive growth capital in the region and for the fast distribution of tech products from the Middle East and globally. The new climate in the region brings a lot of potential to capture. Non-dilutive debt is an asset class now transforming successful companies into unicorns and Liquidity Capital is at the forefront of this by marrying technology and credit know-how.”
Avner Stepak, Controlling Shareholder at Meitav Dash and Chairman at Liquidity Capital said “We are thrilled to cooperate with one of the most significant business groups of Dubai and incorporate an innovative fund that will help technology companies, mainly from our region, finance rapid growth, based on Liquidity’s great online underwriting technology. Sultan Lootah and his team will become great partners of ours and I strongly believe that this is just the beginning of several future joint businesses.”