Sidra Capital expands in Australia

Sidra Capital is expanding into the Australian market via the launch of a private credit fund that invests in the local mining and energy sectors.

Headquartered in Saudi Arabia, the Shariah-compliant alternative fund manager is making its Sidra Asia Pacific Private Investments Sub-Fund I available to Australian investors, overseen by the Singapore team.

The multi-asset fund has US$15 million ($23.4m) invested in Australia's mining sector and aims to achieve a secure and stable revenue stream over a three-year period.
Shariah-compliant and low-volatility, the investment provides quarterly income distribution and a stable fixed yield. The fund uses FX hedging strategies in a bid to safeguard both capital and income.

Sidra vice chair Ghassan Soufi said: "We remain cautiously optimistic about opportunities in Asia Pacific, including Indonesia, Singapore and Australia, which are set to benefit from shifting global supply chains amidst current global economic headwinds. Specifically, Australia presents a compelling market with high-yield opportunities, supported by a well-established legal framework and a strong investment ecosystem comprising both local and international institutional and private investors."

Soufi added the launch of this fund provides private investors with access to a well-developed and refined strategy from a team that has consistently delivered attractive returns over the past five years.

Sidra was established in 2009. It also has offices in Jeddah, Riyadh, London and Dubai. It has about SAR18 billion ($7.5bn) in assets under management.

According to its 2024 annual report, Sidra has a 0.42% holding in Quest Apartment Hotel in Queensland. This was Sidra's first investment in the Australian market made in 2018.

Sidra head of investments APAC Azlan Firman commented: "We continue to refine our strategies to adapt to the ongoing developments in global markets, and we consistently seek to identify private credit opportunities that arise from current economic shifts. These efforts ensure we maintain a competitive edge and deliver real value to our investors."