Afaq Capital Sets a New Benchmark in Venture Capital

Afaq Capital, a Saudi company licensed by the Capital Market Authority (CMA), has fully acquired a venture capital portfolio in a transaction structured and completed with Cotyledon for Management Consultancy. This deal represents the first of its kind in the region involving both full entry and exit of a venture capital portfolio—a landmark move in shaping the regional and local investment ecosystem.

Hassan Ikram, Founder and CEO of Cotyledon, stated:

"This is the first such exit in the region and a clear demonstration that liquidity events in this sector are becoming realistic and achievable."

The deal sends strong signals to investors:

• For international investors: it confirms the presence of reliable exit paths.
• For local investors: it proves that VC-backed companies can deliver real returns, driving more capital inflow and deeper engagement.

This milestone is expected to:

• Accelerate capital recycling,
• Encourage the launch of new funds,
• Strengthen alignment among founders, fund managers, and institutional investors,
• And support Saudi Arabia’s ongoing vision to become a regional innovation and private capital hub.