ADQ, an Abu Dhabi-based investment and holding company, and International Holding Company (ADX: IHC), a global diversified Abu Dhabi-based conglomerate, announced today their intention to create the region’s largest multi-asset class investment manager, headquartered in Abu Dhabi.
Upon launch, the investment manager will manage a portfolio of assets from ADQ’s Alternative Investments platform, Abu Dhabi Growth Fund (ADG) and IHC as well as fresh capital from founding shareholders and future investors to deploy globally. It is expected that all ADQ, ADG and IHC’s capital earmarked for alternative investments will be deployed by the new investment manager. General Atlantic, a leading global growth equity firm, will join as a strategic investor and partner bringing to bear its longstanding track record and commitment to investment excellence.
The investment manager, through a series of new funds, will make investments in alternative assets, including private equity, venture capital, private credit and public equities. It will invest through a combination of LP commitments to top tier global funds (i.e., fund of funds strategy), direct investments (incl. Private Equity and Venture Capital), credit and co-investments.
H.E. Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, said: “Today’s announcement demonstrates our intention to create the largest independent alternative investment manager from the region that will serve global markets, with a clear remit to maximize long-term returns. Together with IHC, we will consolidate investment talent, expertise, and capabilities with scale and firepower to deliver long-term value in a rapidly evolving market.”
The investment philosophy of the manager will be underpinned by a fundamentally driven, high conviction approach to invest across multiple sectors and geographies to achieve superior risk adjusted returns for its investors. The funds will invest across the capital structure and asset life cycle, covering early-stage venture capital to growth and scale-up equity, through to mature and established businesses.
Commenting on the joint venture, Syed Basar Shueb, CEO of IHC said: “Research is showing the global market for alternative investments will continue to grow in the next five years. With these positive indicators, we believe there is a compelling opportunity to invest at scale. There is no doubt this new joint venture will enable the new investment manager to access a diversified regional and global pipeline of investments, manage long-term capital on behalf of its investors, and become a leading institutional investor and partner of choice.”
The investment manager will leverage the existing valued relationships and partnerships with global GPs that ADQ, ADG and IHC have nurtured and will benefit from having continuity in key areas of the investment strategy and team.
At launch, the investment manager will manage funds on behalf of its founding shareholders, ADQ and IHC, and is structured to enable it to raise and manage third party capital, including from institutional investors, pension funds, family offices, and other private and public firms. The new company will bring genuine scale and a proprietary pipeline of global investment opportunities.
General Atlantic brings more than four decades of investment experience creating and scaling businesses, with significant company-building capabilities. The firm will provide strategic support as the business seeks to capture the opportunity set ahead.
William E. Ford, Chairman and CEO of General Atlantic, added: “General Atlantic has been investing in the Middle East since 2015 and we are committed to further deepening our engagement in the region. We are proud to join as an anchor investor and strategic partner to support ADQ and IHC in establishing a leading global alternative investment and wealth manager from the region. This new investment manager will play an important role in strengthening Abu Dhabi’s position as an emerging global financial center.”
The investment manager will establish its primary hub in Abu Dhabi, with the intention of adding further international offices in North America, Europe and Asia. It will be led by a highly experienced investment team drawn from ADQ’s Alternative Investments platform, ADG and IHC.
With rapidly maturing capital markets, deep pools of liquidity, and a sophisticated investor ecosystem that combines diligence with sector expertise to determine optimal asset allocation strategies, Abu Dhabi’s financial services industry is at an inflection point. The launch of the new manager is strategically timed to capitalize on these secular trends and drive value for its shareholders and partners.