PIF's Lucid deal a VC success even as fund isn't among top 10 investors in 2021 | ZAWYA MENA Edition

PIF's Lucid deal a VC success even as fund isn't among top 10 investors in 2021 | ZAWYA MENA Edition

Saudi Arabia's Public Investment Fund, known as PIF, wasn't among the top 10 global sovereign wealth funds in terms of cash deployment in 2021; however, its investment in Lucid Motors was considered one of the most successful venture capital deals of the year, according to a new industry report.

The PIF "was not as active in VC as in previous years, but it scored one of the best goals of the season when Lucid Motors went public in July," Global SWF said on Saturday in its annual report on the performance of global sovereign wealth funds.

With a return on investment that was almost 40 times, "every SOI [state-owned investors] should aspire to replicate the success of PIF with Lucid Motors...even if 90 percent of startups are doomed to fail," Global SWF said.

PIF invested $1.3 billion for 63 percent of Lucid in 2018, when the startup was running short of money. "Three years later, the stake is worth $41 billion, and the transaction showcases the competitive advantage of sovereign wealth funds when it comes to venture capital investing, thanks to liquidity and long-term horizon," it added in the report.