Phoenix Venture Partners Closes $23M Debut MENA Fund

What changed

Phoenix Venture Partners has closed its first fund, the $23 million Phoenix Venture Partners Innovation Fund, backed by 42 investors across nine countries. Founded by Steve Khayat, Fares Al Obeid and Musaed Al Razouki, the UAE-based firm has invested in seven startups and plans to expand to 15 to 20 companies across MENA.

About 45% of the fund, roughly $10.35 million, remains available for new investments and follow-on funding. Deployment is planned through 2027 and may continue into 2028.

Why it matters

This is more than a fundraising milestone. Phoenix now has committed capital it can deploy over several years in fintech, healthcare, education, logistics and sustainability, giving the firm room to support companies beyond their first cheque.

The portfolio target also gives the fund a clearer operating test. Reaching 15 to 20 companies means turning seven existing investments into a broader portfolio while deciding how much of the remaining money goes to new startups and how much supports companies it already backs. That allocation will matter more than the headline fund size.

Phoenix’s disclosed investors include UAE-based KSH Investments, Kuwait-listed Al Imtiaz Investment Group, the family office of Fawzi Musaed Al Saleh and private investment funds from Luxembourg. The mix suggests the fund is drawing capital from institutional, family-office and private-fund sources rather than relying on a single backer.

The firm has also used co-investment deals to bring investors into selected rounds. Phoenix led a $3.5 million round for UAE consumer fintech startup Sav and invested in COFE Tech ahead of its $43 million funding round. That model can extend the fund’s reach, but its next proof point will be whether the remaining capital produces a portfolio of durable companies rather than simply more transactions.

International investments remain an option, not a confirmed allocation. For now, the centre of gravity is MENA, with Phoenix’s roughly $10.35 million deployment pool set to determine how visible the firm becomes across the region’s technology market.