Derayah Commits SR 244 Million to HOF Capital AI & Tech Fund

Saudi investment firm Derayah Financial Company has signed a binding commitment to invest SR 244 million in HOF Capital Strategic Opportunities Fund II, a Cayman Islands-based fund focused on artificial intelligence and advanced technology.

Derayah said 40% of the commitment, or approximately SR 97.5 million, was paid at closing, while the remaining 60% will be contributed over 24 months depending on the fund’s capital requirements.

The fund is targeting a total size of SR 4.5 billion, with a maximum size of SR 5.625 billion.

Its strategy is expected to build a portfolio of roughly 15 investments across artificial intelligence, enterprise software and other advanced technology sectors, although the final number of companies will be determined by the fund manager.

The investment is particularly focused on opportunities emerging from growing demand for AI technologies and software, giving Derayah exposure to private-market companies operating across the sector.

Derayah also plans to launch its own multi-strategy fund focused on artificial intelligence and technology, subject to regulatory approvals. Once established, the company intends to transfer its investment in the HOF Capital fund into the new vehicle, which will be managed by Derayah’s asset management team.

The move forms part of Derayah’s expansion in private markets, with the company looking to give investors greater access to international technology and AI investment opportunities.