$240m investment vehicle eying Nasdaq IPO targets Saudi investors

DUBAI: Arrow Capital, a Dubai-based investment advisory firm, has partnered with a Silicon Valley venture capital firm to set up a $240 million investment vehicle that aims to identify a potential technology partner to list on the Nasdaq New York.

Arrow has teamed up with San Francisco-based Tribe Capital to partner on a special purpose acquisition company (SPAC) and, according to its press release it is looking to identify companies in the technology sector that are “showing inflection points in their growth trajectory” and are ready for an initial public offering (IPO).

Often referred to as “blank check companies” in the industry, SPACs are seen as a quick and cheap route to a Nasdaq listing. The Arrow/Tribe SPAC follows in the footsteps of similar recent fundraising deals involving big regional names, such as Abu Dhabi’s Mubadala Capital and Saudi Arabia’s Public Investment Fund.

Rohit Nanani, Arrow Capital’s founder and CEO, told Arab News that he was targeting investors across the Middle East to take part in the SPAC, including those in the Kingdom. “We are excited to offer to Saudi investors the opportunity to access high quality, more diversified deal flow coming right from the heart of Silicon Valley.”

“We plan to extend these unique opportunities and deal access to our full network of investors in the Middle East, including Saudi Arabia. We have already seen growing interest and demand from the Kingdom, and going forward we plan to offer Saudi investors greater visibility and opportunity to participate in high-growth technology investments long-term,” he said.

Tribe Partner currently has about $540 million in assets under management and some of its recent technology deals have included names such as Bolt, Carta, Front, Instabase, Momentus, and Relativity Space.

Last week, Arabic music-streaming service Anghami announced that it was set to become the first technology company from the region to list on New York’s Nasdaq stock exchange as part of a SPAC. Set to list in late May or early June, the SPAC was co-sponsored by Singapore’s Vista Media Capital and UAE asset management firm SHUAA Capital.

“The Middle East has fast become an increasingly attractive marketplace. The region’s commitment to technology innovation, rising community of entrepreneurs and infrastructure development has made it a hub for global trade and investment, and a valuable conduit into emerging markets,” Arjun Sethi, co-founder of Tribe Partner, said, adding that “expanding our network into the Gulf has been on our radar for quite some time.”