INVESTMENT IMPACT
Our investments are aligned with the Kingdom’s development through SEDCO’s investment themes, strategic plays, and focus on priority sectors.
Delivering on our LEAP strategy
We are actively pursuing co-investment opportunities;
collaborating with partners and incorporating flexibility depending on project context and expertise required.
Domestic investment
Reducing operational involvement
Reducing the number of direct investments with operational involvement and shifting towards an investor role in more profitable strategic plays is a core transformative shift in our LEAP strategy.
Following the momentum from exiting legacy investments in Tarfeeh and Ejada in 2022; we have swapped our ownership in Yusr to a minority stake in AlAndalus, and are in the process of swapping the illiquid ownership in AutoWorld into a minority stake in publicly traded Budget. We expect SEDCO’s operational involvement to reduce further as we implement other strategic options for legacy investments.
Increasing diversification
We are working to invest in a diverse set of strategic themes, sectors, and asset-classes that support the Kingdom’s economic development and Vision 2030.
Diversifying into new asset classes to improve our overall risk-return profile, we initiated the indirect investment program in regional Private Equity (PE) and Venture Capital (VC) funds, along with Single Asset funds. This involved establishing a comprehensive fund investment process and a due diligence methodology, leading to investments in two funds. We expanded the Discretionary Portfolio Management (DPM) investment program by adding two new asset managers, Riyad Capital and SEDCO Capital alongside our existing manager Jadwa Investment. Consequently we also launched the public equity investment program leading to a major deployment in Jamjoom Pharma in the Saudi main market. Investments in new asset classes now constitutes approximately 12% of the DI portfolio.
Real Estate investment
Aligned with SEDCO’s strategic reorientation, we are actively pursuing co-investment opportunities with partners who will bring additional value to the table. Our collaborative approach involves flexible leadership dynamics, depending on the project context and expertise required.
Developing synergies across the Group, our Real Estate functions support the growth of subsidiaries such as Elaf, Al Mahmal, SEDCO Development, SEDCO Capital, and others: serving as multiplier and catalyst introducing new infrastructure projects, partners, and opportunities. From a transactional perspective, our operations facilitate their growth as we invest alongside them and leverage the specific industrial proficiency and expertise in their respective domains.
The land department, together with brokerage, research, and valuations, were integrated within Asset Management, enhancing our capabilities for divestment, exploring new opportunities, and more.
Integrated talent from a number of real-estate related subsidiaries within the SHREG Division. The SHREG Division is led by one head, which has helped create accountability and responsibility within the team. Where necessary, SEDCO’s legal department and other ancillary functions provide support to improve transactions and the broader portfolio.