Adic makes its first Russian foray

The Abu Dhabi Investment Company yesterday said it had taken a stake in a Russian ski resort, but refused to disclose the size of the investment. It's a slightly out-of-character development, given that Adic has been focusing since last year on building up its reach as a regional investment bank and asset manager - not jumping into big foreign investments.

The company has long had a presence in Gulf private equity deals, and it has been busy adding staff and resources to its asset management arm; a few months ago, the company said it was gearing up to offer equity funds. The Russian investment, though, better resembles the strategy of Adic's parent company, called the Abu Dhabi Investment Council (aka "the Council"), which, among other things, has put its considerable funds behind a majority stake in the iconic Chrysler building in New York City.

The Russian move appears to signal a new strategy for Adic in which it pushes for closer financial ties between the Mena region and elsewhere. The firm yesterday signed a memorandum of understanding with South Korean officials with the aim of increasing mutual investment, and it said in a statement that its Russian stake was also geared towards solidifying international economic cooperation.