Having secured its Saudi operational licence in August 2024, WinVeston Capital is bullish about achieving assets under management (AuM) of SAR1 billion (US$266.67 million) by the end of 2025 by focusing on Shariah fund innovations.
Asset Management Head Dr Muhammad Ishaq told IFN Investor that WinVeston Capital sidestepped the challenge of being a new player as it is part of the Arco Group – which ranks among the largest staff recruitment outfits in Saudi Arabia, with over 10,000 employees.
“Arco is into multiple businesses and involved in fintech as well. They want to get into the capital market to possibly explore IPOs of sister companies. The investment capital operation is going to be Shariah compliant, but we will be doing it differently.”
For the initial fund offering, developed in the background during the past 2.5 years while the licensing process was being conducted, WinVeston Capital is targeting the private credit space to support indirect financing.
“Microfinancing currently caters to a small percentage of Saudi Arabia’s population and is valued at SAR12.2 billion (US$3.25 billion). With a CAGR (compound annual growth rate) of 9% to 12%, driven by an increased demand from SMEs and low-income households, there is certainly room for growth.
“We want to capture the gaps while getting into an innovative mode. We just don’t want to be one of the players in the crowd with the similar products.” Muhammad said the maiden WinVeston Financing Fund launch to be later this month, once the necessaries are completed.
The firm is looking to launch a fund in each quarter, with the goal of rolling out both public and private funds in various asset classes.
“However, we will execute it differently by embracing technology in our investment decision-making process and client experience. Investors are continuously on the lookout for innovative products that match international standards.”
Investment banking is to be another facet of WinVeston Capital’s business focus, together with advisory services.
“We actually did not factor in much revenue from advisory but to our surprise, we are getting more business in the advisory segment than in investment banking on a regular basis. Currently, we are engaged in seven projects.”
