Warburg Pincus teamed up with Saudi Arabia’s $320bn pension fund manager, Hassana Investment Co., to pursue investment opportunities in the kingdom.

The partnership aims to drive long-term growth in Saudi Arabia as the global private equity firm deepens its footprint in the Middle East.

The New York-based private equity firm and Hassana have maintained a decade-long investment relationship in international markets. With this new agreement, Warburg Pincus joins a growing list of global PE players, including Ardian, General Atlantic, and CVC Capital Partners, that are expanding their presence in the region.

Warburg Pincus currently has exposure to the Middle Eastern market through Gradiant, a clean-tech water solutions provider, and has previously invested in business process outsourcing firm Mercator, which it merged with Accelya before exiting in 2019. The firm was also a backer of payments provider Network International.

Meanwhile, Hassana has been ramping up global investments following a 2021 merger of two Saudi pension funds that significantly expanded its assets. It has recently committed $1.5bn to TPG’s climate funds and signed agreements with EIG Global Energy Partners and Brookfield to explore new Middle East-focused investment funds.

Global investors have increasingly looked to Saudi Arabia as the kingdom seeks to maximize returns on its vast capital reserves and attract foreign firms to the region. In addition to Hassana, private equity firms are forging partnerships with the country’s nearly $1tn Public Investment Fund to gain a foothold in one of the world’s fastest-growing investment markets.