Venture debt fund launched through Israeli-Dubai partnership

Israeli fund manager Liquidity Capital and Dubai-based Vault Investments have teamed up to launch a $100 million venture debt fund.

The fund aims to back revenue-generating companies across the Middle East across a variety of sectors. It will use a technology-based approach developed by Liquidity Capital which projects companies’ revenue growth to understand their potential.

Typical loans will range from $2 million to $50 million and the fund has a flexible lifespan depending on how many opportunities are available. Several companies are already in the due diligence phase and the first investments are expected to be made in February.

As part of the deal, the two firms will open offices in Dubai to provide origination capacity.

The joint venture follows a peace agreement signed in August 2020 by the United Arab Emirates and Israeli governments to allow the two countries to normalise their relationship. The two firms said they are hopeful this new co-operation will allow them to unlock opportunities across the Middle East.

“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,” said Ali Lootah, chairman and managing partner at Vault Investments.

Ron Daniel, chief executive and founder of venture debt fund manager Liquidity Capital, added: “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.”

Branding for the vehicle is due to be confirmed within the coming weeks.