Amplify Growth Partnership, a new player in the venture debt market, has announced the launch of its $100 million private debt fund, Amplify Growth Fund I. The fund aims to bridge the gap in debt capital for technology-driven companies in the Middle East, North Africa, and Turkey (MENA), focusing primarily on the Gulf Cooperation Council (GCC) region. This launch is a strategic move to support tech businesses, particularly in sectors where venture capital remains underdeveloped or challenging to secure.

The First Deal: Backing a Saudi Fintech

In tandem with the fund’s launch, Amplify has also revealed its first transaction: providing capital to a fintech company in Saudi Arabia. This deal marks the fund's commitment to supporting innovation in the region, where financial technology is rapidly evolving and offers significant growth potential. This first deployment of capital demonstrates Amplify’s readiness to finance businesses that need flexible, growth-oriented debt solutions.

Sharaf Sharaf, a seasoned credit investor with over 20 years of experience, leads Amplify Growth Fund I. His career spans both debt and equity investments across various sectors and regions. He brings a wealth of expertise in fund management, and his leadership is expected to play a critical role in shaping Amplify’s future transactions.

Bridging the Debt Capital Gap

The timing of Amplify’s launch is notable, as venture debt is gaining traction across the MENA region. The year 2023 was a record year for venture-backed companies in MENA, with debt financing reaching $757 million—a 262% increase from 2022. However, the sector remains underfunded when compared to global standards. While some mega-transactions fueled the rise in venture debt last year, Amplify aims to focus on market-standard transactions, filling the void for smaller, scaling tech companies in Series A to Series C stages.

The need for such funding is apparent. Traditional lending institutions have often been hesitant to support early-stage, high-growth tech companies, particularly in emerging markets. Amplify seeks to provide an alternative route to financing, enabling startups and scaling businesses to access the capital they need without diluting equity. The fund offers flexible debt solutions that allow businesses to maintain operational control while pursuing rapid expansion.

Strategic Partnerships: Ajeej Capital and Nuwa Capital

Amplify Growth Partnership is a collaboration between two established investment firms—Ajeej Capital and Nuwa Capital. Ajeej Capital, headquartered in Dubai’s DIFC and regulated by the Dubai Financial Services Authority (DFSA), is a regional asset manager with over $1 billion in assets under management. Since its inception in 2007, Ajeej has managed institutional capital across the Middle East, developing a reputation for identifying high-growth opportunities.

Nuwa Capital, on the other hand, is known for its full lifecycle investment platform, supporting startups from the seed stage to exit across the MENA region and other emerging markets. Their partnership with Amplify will leverage Nuwa's extensive network and investment expertise, helping the fund identify promising opportunities and maximize the value it can bring to its portfolio companies.

Both firms bring complementary strengths to Amplify. Together, they aim to build a lasting franchise that supports the region’s tech ecosystem and offers founders innovative financing solutions. According to Sharaf, "The Amplify Growth Fund is poised to meet the region’s growing demand for debt capital in the venture and SME sectors, which are areas that have been historically underserved. Amplify unites two pioneering investment firms, Ajeej Capital and Nuwa Capital, who together with the Amplify team, seek to build an enduring franchise that empowers companies to access the growth capital they need to realize their ambitions."

A Broader Investment Strategy

While Amplify’s primary focus is on companies within MENA, the fund plans to allocate up to 20% of its capital to businesses outside the region, particularly those looking to enter the MENA market. This approach could provide international businesses with an opportunity to tap into the rapidly growing tech ecosystem in the region. Additionally, traditional enterprises integrating technology into their operations will also be considered for funding, reflecting Amplify’s broader commitment to driving digital transformation across sectors.

Sharaf expressed confidence in Amplify’s pipeline of deals, stating, “We provide innovative debt solutions to meet the evolving needs of owners, founders, and entrepreneurs. With a strong pipeline of deals and an upcoming announcement of a second deal, we are on track to make a lasting impact on the market.” This second deal is expected to be announced soon, signaling Amplify's readiness to deploy capital and its focus on scaling its investments rapidly.

Amplify Growth Partnership's launch of its $100 million debt fund represents a significant step forward in addressing the financing needs of technology-driven companies in MENA. With its first Saudi fintech deal already closed, Amplify has positioned itself as a key player in the region’s venture debt market. By focusing on market-standard transactions and leveraging the expertise of Ajeej Capital and Nuwa Capital, Amplify aims to offer tech entrepreneurs the capital they need to scale, without the burdens of equity dilution or limited financing options. As demand for debt capital in the region continues to grow, Amplify Growth Fund I looks set to become a critical driver of innovation and expansion for the MENA tech ecosystem.