Document background
The Private Equity Fund Agreement is a foundational document used when establishing a private equity fund in Saudi Arabia. It serves as the primary governing document that structures the relationship between fund managers and investors, while ensuring compliance with Saudi Arabian law, CMA regulations, and Sharia principles. The agreement is essential for any entity looking to raise and manage private equity capital in Saudi Arabia, providing comprehensive coverage of fund operations, investment parameters, capital commitment mechanisms, profit distribution structures, and governance frameworks. It includes specific provisions required by Saudi regulators while incorporating international best practices in private equity fund management. This document is particularly crucial given Saudi Arabia's growing private equity market and the kingdom's Vision 2030 initiative to diversify its economy and attract foreign investment.
