Alpha Dhabi Holding, a subsidiary of the Abu Dhabi-listed International Holding Company, has signed an agreement to commit $1 billion for investments in artificial intelligence companies around the globe.
Investment Holding Company is to invest through the Alpha Wave Global-managed fund Alpha Wave III, which also seeks to target high-growth companies, it said in a statement on Monday. Alpha Dhabi will deploy the committed capital over time, in line with “capital calls and the fund’s investment programme”, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares trade.
Returns from the Alpha Wave III fund will be dictated by the performance and valuation of the underlying investments, with value expected to be realised through distributions and exits over the life of the fund.
The investment commitment is in line with the company’s growth strategy and “broadens Alpha Dhabi’s access to artificial intelligence and innovation-led opportunities”, said Hamad Al Ameri, managing director and group chief executive of Alpha Dhabi. “This investment supports our portfolio diversification objectives and our focus on long-term value creation.”
Building on commitment
The latest commitment builds on Alpha Dhabi’s 2022 investment of Dh9.2 billion ($2.5 billion) in Alpha Wave Ventures II.
The fund, launched by Chimera Capital and Alpha Wave, received a capital contribution of Dh2.6 billion and undrawn capital commitment of Dh6.6 billion to be drawn down over time for investments in growth-stage companies globally, the company said at the time.
Through the venture fund, Alpha Dhabi has gained indirect exposure to companies including SpaceX, OpenAI and Anthropic. Alpha Dhabi intends to fund the investment in Alpha Wave III from the recycling of its cash distributions from Alpha Wave Ventures II and existing resources.
“The financial impact will be recognised over time, reflecting the timing of capital deployment and the performance,” Alpha Dhabi said on Monday.
Established in 2013, Alpha Dhabi manages a portfolio of more than 250 public and private investments, spanning 45 countries. It invests in companies in high-growth sectors, including AI and technology, real estate, industry, construction, health care, energy and hospitality.
In August, Alpha Dhabi doubled its shareholding and capital commitment in its private credit joint venture with the emirate’s sovereign wealth fund, Mubadala Investment Company.
Under the revised partnership agreement, the company boosted its capital commitment in Micad Credit JV to $1 billion. It also raised shareholding from 20 per cent to 40 per cent in Micad, which manages about $1.7 billion in assets across 45 portfolio companies, Alpha Dhabi said at the time.
In May, Abu Dhabi's Ta'ziz signed a deal with Alpha Dhabi, targeting $10 billion in capital investment in its new industrial chemicals ecosystem in the emirate. The two companies said at the time that they were conducting a joint feasibility and market study, and the move remained subject to final investment decisions and regulatory approvals.
