The country’s sovereign wealth fund will serve as an anchor investor in the Toronto-based asset management giant’s new private equity vehicle, Brookfield Middle East Partners. (The Logic)

Talking point: Brookfield is among a slate of large global investors expanding their Middle East portfolios. At least half of the new fund will go toward deals in Saudi Arabia and to international firms looking to expand in the kingdom, as it tries to boost foreign direct investment. Brookfield already manages about US$8 billion in assets in the region, and opened an office in Riyadh last year. Its agreement with Saudi Arabia’s Public Investment Fund follows the wealth fund’s announcement that it plans to cut overseas investments by about a third and invest more in its domestic economy.