Abu Dhabi firm launches $50bn asset manager

ADGM

Abu Dhabi-based Chimera Investment has launched Lunate, an alternative investment manager with over $50 billion in assets under management (AUM).

The company – one of the Middle East and North Africa’s (Mena) largest alternative investment managers – will be based in the Abu Dhabi Global Market. It will invest across private equity, venture capital, private credit, real assets, public equities and public credit.

Lunate plans to expand globally with global offices in North America, Europe and Asia.

“The creation of Lunate follows a multi-party effort to establish an independent investment manager of scale and breadth, headquartered in Abu Dhabi and serving global markets,” state-owned WAM news agency reported citing a company statement.

Chimera Investment is part of a business overseen by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser and brother of UAE President Sheikh Mohammed bin Zayed.

It is also part of the private investment firm Royal Group, which is the majority owner of the UAE’s International Holding Company (IHC).

In addition, Sheikh Thanoun chairs the Abu Dhabi Investment Authority and ADQ, Abu Dhabi’s third-largest wealth fund.

In March, ADQ and IHC announced plans to create a multi-asset class investment manager with global private equity firm General Atlantic as a strategic partner and investor.

New research from Strategy& shows the asset management market in the GCC is projected to reach nearly $500 billion in onshore assets by 2026, a leap from $400 billion at the end of 2022.

Experts say the UAE is fast emerging as an attractive alternative to traditional investment centres, such as London and New York, and more than 200 hedge funds – a type of alternative investment vehicle – are already present.

Dr Bhaskar Dasgupta, non-executive director GCC, Israel & India boards at Apex Group, a global financial services provider, said: “While other jurisdictions such as New York and London will continue to be important hubs, the confluence of factors make the UAE a particularly attractive jurisdiction for managers over the next three to five years.”