Saudi Arabia-based family office KBW Ventures is stepping up its exposure to its local venture and private equity markets, betting that a confluence of policy support, technological adoption, and valuation resets will make the next five years a defining period for the region’s investors.
Ekta Tolani, the family office’s chief investment officer, who joined in early 2024, has shifted KBW’s portfolio toward growth-stage ventures and AI-driven businesses while broadening its international reach.
“The goal has been to identify pockets of high growth and reallocate capital to where the opportunity truly lies,” said the CIO over email. “That meant pivoting toward growth-stage investments and diversifying geographically to balance risk and capture upside.”
The strategy comes as Riyadh intensifies its efforts to deepen the venture ecosystem through state-backed platforms such as Sanabil, SVC, Jada Fund of Funds, and NEOM. While most Saudi family offices still favor public equities and real estate, KBW sees early signals of change.
“Venture capital is still maturing in the kingdom, but we’re seeing institutional momentum build,” added Tolani. “Government initiatives have created the scaffolding — now it’s about deploying smart capital into scalable models.”
KBW is concentrating on ventures with clear commercial traction, particularly in B2B SaaS, gaming, and fintech. “We’re not in the business of taking product risk. We back companies that have achieved real revenue and are ready to expand — either internationally or by product line.”
AI remains the strongest theme running through KBW’s venture exposure. The firm holds stakes in companies such as Turing, HerculesAI, Trifacta, Minerva, and Signifyd and has tightened its diligence standards around the technology. “Every pitch today claims an AI component,” added Tolani. “We assess whether it’s genuinely improving efficiency, accuracy, or outcomes — and whether the company owns proprietary data to sustain that edge.”
According to PitchBook data (2025), global venture and growth equity funding reached about $480B through the third quarter, with AI-focused companies accounting for nearly one-third of total capital deployed.
KBW views this as a moment to enter quality assets at more reasonable prices following 2023’s valuation correction. “Some of the best companies are now trading at discounts that finally make sense,” explained Tolani. “It’s a good vintage year for [limited partners] with dry powder.”
The family office continues to favor growth strategies over buyouts, with exposure centered on technology-enabled sectors. “Growth equity remains underpenetrated in the region,” said the CIO. “There’s a gap between demand and supply of capital, particularly in Series B and C rounds and that’s where we see strong, risk-adjusted returns.”
For foreign investors, the firm points to Saudi Arabia’s fintech, AI, and e-commerce sectors as clear entry points, alongside emerging areas such as clean tech, digital infrastructure, food security, and biotech — all backed by Vision 2030 priorities.
“The combination of policy tailwinds, market correction, and innovation makes this a rare window,” said Tolani. “Over the next five years, we expect venture, AI, and growth equity to move from the margins to the core of Saudi investment strategy.”
