Abu Dhabi-based global alternative investment management company Lunate and US-based investment bank BNY Mellon will invest in Alpheya, a new wealth technology company.
The new company, based at Abu Dhabi Global Market, will be funded with a capital commitment of $300 million and is expected to start serving clients in 2024, Lunate said on Tuesday.
Alpheya will develop a customised wealth management technology platform for wealth and asset managers in the Middle East and North Africa, Lunate said.
“Wealth franchises today are managing complex technology environments and a multitude of investment options that are all supported by more data and analytics and increasingly sophisticated risk management practices,” said Roger Rouhana, chief executive of Alpheya.
“The creation of a wealth technology solution that provides digital tools and software solutions in one integrated platform and is customised for the Middle East, will greatly enhance the ability of regional wealth managers to grow in a scalable and client-centric way.”
Lunate, an independent alternative investment company, with more than $50 billion in assets under management, was launched by Chimera Investment, an Abu Dhabi-based private organisation in September.
The company, also based at the ADGM, has interests in private equity, venture capital, private credit, real assets, public equities and public credit markets.
“We look forward to leveraging our local industry and investment expertise with BNY Mellon’s long history in wealth technology solutions to help wealth managers in the Middle East meet the evolving needs of their clients,” said Lunate’s managing partner Seif Fikry.
Alpheya aims to meet the growing demand in the Middle East from wealth and asset managers, private banks, and investment houses, for an end-to-end digital solution that delivers a range of services, including client onboarding, financial planning, portfolio construction, trading and rebalancing, risk management reporting, and analytics, the company said.
The new platform aims to provide tools for clients to meet the growing challenges of managing complex technology and numerous investment vehicles, it said.
“Not only will this new platform transform wealth capabilities for financial institutions across Mena, it will also strengthen Abu Dhabi’s role as a global hub for wealth and asset management,” Mr Fikry said.
BNY Mellon, which will hold a minority share in the new company, will provide it with global expertise in wealth technology, it said.
BNY Mellon works with a range of sovereign wealth funds, financial institutions, governments and other clients throughout the region. It offers asset servicing and ancillary services, corporate trust and treasury services to its clients.
The New York-based investment bank had $45.7 trillion in assets under custody or administration as of the end of September this year, while its assets under management reached $1.8 trillion.
“The new company will leverage our deep expertise in providing wealth managers and investors digital tools and solutions for enhancing portfolio management, seamlessly connecting to local and global providers, and harnessing world-leading data management capabilities,” said Akash Shah, chief growth officer at BNY Mellon.