IHC's Chimera consolidates asset and investment management businesses

ADX-listed parent company says the move is part of plans to develop a regional investment champion

The Abu Dhabi skyline. Chimera Investment's diversified portfolio of proprietary assets is worth $6 billion. Khushnum Bhandari / The National

International Holding Company, the UAE's most valuable listed company, is streamlining the asset and investment management businesses of subsidiary Chimera Investment as part of plans to develop a regional investment champion.

The company’s board has approved plans to initiate the Chimera Investment transaction through the common control method, which will be subject to regulatory approvals, IHC said on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

A common control transaction is a transfer of assets or an exchange of equity interests among entities under the same parent's control.

Chimera Investment owns Chimera Capital Holding and its subsidiaries — Chimera Capital Limited, an asset manager licensed and regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority, and Chimera Capital, an investment manager regulated by the UAE’s Securities and Commodities Authority.

“The move aligns with IHC's local and international growth plans within the financial services and asset management space, and lays the foundation for the development of a regional champion,” the company said.

Chimera Investment's diversified portfolio of proprietary assets is worth Dh22 billion ($6 billion).

Its subsidiary Chimera Capital Holding has more than Dh48 billion of assets under management and holds stakes in investment companies that have assets worth Dh26 billion.

Chimera focuses on building products for third-party clients across various asset classes, including public markets, private equity, venture capital and credit strategies.

With more than $10 billion in global venture capital, Chimera is the largest venture capital asset manager in the Mena region.

It also offers corporate finance advisory services and has advised IHC previously on its acquisition of 50 per cent of Kalyon Enerji in Turkey in 2022, as well as Q Holding on its acquisition of Tamouh Investment in 2021.

Its ADGM-registered entity is also approved by the Central Bank of Ireland to act as an investment manager to authorised Irish investment funds.

Last November, Chimera Capital and investment company Alpha Wave Global launched an open-ended credit fund with initial commitments of $2 billion that aims to channel into private credit market opportunities globally, the two companies said at the time.

IHC, which plays a key role in supporting the diversification of the UAE economy, invests in agriculture, brokerage and financial services, entertainment, health care, industry, entertainment, retail, property, energy and maritime industries.

The conglomerate, which has more than 422 subsidiaries, including Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine and Multiply Group, had total assets of Dh227.5 billion at the end of 2022, up from Dh88.98 billion at the end of 2021.

This month, IHC and ADQ, the Abu Dhabi-based investment and holding company, revealed plans to create the region’s largest multi-asset class investment manager.

The new entity, based in Abu Dhabi, will manage a portfolio of assets from ADQ’s Alternative Investments platform, the Abu Dhabi Growth Fund and IHC, as well as new capital from founding shareholders and future investors to be used globally, the companies said.