Abu Dhabi's Chimera launches alternative investment firm with over $50bn in assets

Lunate will provide private and public market multi-asset class investment solutions to institutional investors, pension funds, family offices and other investment firms

Abu Dhabi Global Market grew its assets under management by a record 35 per cent in the first half of 2023. Khushnum Bhandari / The National

Chimera Investment, an Abu Dhabi-based private organisation, has launched an independent alternative investment company, Lunate, with more than $50 billion in assets under management, to tap into investment opportunities globally.

The new company, which will be based at the Abu Dhabi Global Market, will target global opportunities across private equity, venture capital, private credit, real assets, public equities, and public credit markets, according to a statement on Friday.

Lunate will be owned by Chimera Investment and Lunate’s senior management.

With plans to start operations in the fourth quarter, Lunate said it would provide multi-asset class investment solutions for its clients, which include institutional investors, pension funds, family offices and other investment firms.

The firm will bring "differentiated and innovative private and public market solutions to the region and beyond from our home base in Abu Dhabi”, Seif Fikry, managing partner at Lunate, said.

“Lunate will launch new products to further grow our assets under management while we continue managing legacy products on behalf of our clients,” he said.

The company said it signed long-term separate managed accounts with multiple clients at the time of launch “with commitments to manage their existing assets and deploy new capital”.

Lunate aims to deploy capital through a combination of strategies such as limited partnership, co-investments and direct investment opportunities.

It expects to expand globally and open offices in North America, Europe and Asia.

The global alternative investment industry is growing, with assets under management expected to nearly double to $23.21 trillion by 2026, from an estimated $13.32 trillion at the end of 2021, a report by investment data company Preqin found.

ADGM, the region's fastest-growing financial hub, grew its assets under management by a record 35 per cent in the first half of 2023, underscoring its position as the region's fastest-growing financial hub.

A total of 102 asset managers, comprising investment firms and hedge funds, which manage 128 funds, set up shop in the capital’s financial centre during the six-month period, ADGM said on Thursday.

Abu Dhabi's economy has gone from strength to strength, and authorities have introduced several programmes to attract market players from around the world to set up business in the emirate and take advantage of its entrepreneurial infrastructure and friendly regulations.

The UAE capital’s non-oil economy grew by 6.1 per cent annually in the first quarter of the year, with the sector's gross domestic product reaching the highest level in nine years, on the back of its strong diversification push, according to Statistics Centre Abu Dhabi.

Meanwhile, AUMs in the GCC are projected to expand above the global average to hit about $500 billion in onshore assets by 2026, from $400 billion at the end of 2022, PwC unit Strategy& said in a report last month.