The Daily Circuit: Lunate aims at AI + Aramco mulls asset sale

In the Daily Circuit today, we’re reporting on Aramco mulling a plan to raise funds by selling billions of dollars in assets, DHL’s possible $150 million investment in building a Riyadh logistics center, an agreement between the QIA and Canada’s Ivanhoe Mines to produce critical minerals, and Saudi Arabia enabling expats with special residency permits to buy liquor. But first, Lunate considers a $1 billion investment in AI.

Abu Dhabi’s Lunate investment firm is spearheading a new push to bolster the UAE’s global position in developing artificial intelligence technology.

The two-year-old Abu Dhabi asset manager is now considering a possible investment of up to $1 billion in MGX, which was established last year by the Mubadala sovereign wealth fund and its G42 tech unit to channel money into AI, Bloomberg reports.

Lunate, which works with many of the world’s largest firms including BlackRock, Blackstone, CVC Capital Partners and Brookfield Asset Management, raised about $17 billion in 2024, of which it has already invested about $13.5 billion, the news agency said.

Among its largest backers are Abu Dhabi sovereign wealth fund ADQ and Chimera Investment, which are both connected to Sheikh Tahnoon bin Zayed, the UAE National Security Advisor and Deputy Ruler of Abu Dhabi.

The UAE government, meanwhile, announced a $1 billion “AI for development” initiative at the G20 summit in Johannesburg to expand AI infrastructure across Africa, and integrate the technology into education, agriculture, health care and climate adaptation.

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Blackstone, Lunate team up to launch $5B investment platform

Blackstone, the world’s largest alternative asset manager, is joining forces with Abu Dhabi’s Lunate to launch a $5 billion logistics investment platform across the Middle East.

The new venture, called GLIDE, will focus on developing new “Grade A” logistics assets and evaluate selective acquisitions and sale-and-leaseback transactions, the investment firms said on Monday.

Lunate is an Abu Dhabi-backed alternative investment manager founded in 2023 that oversees over $110 billion in assets. “This partnership combines global scale with regional expertise to unlock a market ready for transformation,” Lunate Managing Partner Khalifa Al Suwaidi said.

Jon Gray, Blackstone’s President and Chief Operating Officer, said the venture will capitalize on Lunate’s growing presence in the Gulf.

“The profound economic transformation underway in the GCC, driven by pro-growth policies, favorable demographic shifts and broad-based economic diversification, is creating powerful momentum for sectors like logistics,” Gray said.

Lunate launches thematic ETF on Abu Dhabi Securities Exchange

Abu Dhabi-based investment manager Lunate plans to capitalize on the rapid expansion of so-called thematic exchange-traded funds with the launch of a new portfolio of ETFs, starting with a fund based on companies developing quantum computing technology.

The Boreas Solactive Quantum Computing UCITS ETF, which tracks the Solactive Developed Quantum Computing Index, will list on the Abu Dhabi Securities Exchange on Sept. 22, The National reports. 

Holdings of 25 companies will include Microsoft, Nvidia and IBM, as well as quantum computing pure-plays Maryland-based IonQ and California-based Rigetti.

The market for thematic ETFs, which focus on selective investment categories ranging from sustainability to cryptocurrency, has doubled over the past five years to reach $562 billion globally. Lunate said its new range of thematic ETFs would “enable investors to tap into the structural megatrends driving tomorrow’s innovation and growth.”

The company, which is backed by Abu Dhabi’s ADQ and Chimera Capital – investment arms tied to Sheikh Tahnoun bin Zayed – has more than $50 billion under management and has been rapidly expanding its asset base and suite of investment products in recent months.

Last week it announced a $2 billion deal to acquire a minority stake in global hedge fund powerhouse Brevan Howard to anchor a new investment hub in the Gulf, which will be based in the Abu Dhabi Global Market.

Lunate buys $2 billion minority stake in London’s Brevan Howard

Abu Dhabi is pouring $2 billion into hedge fund powerhouse Brevan Howard to anchor a new investment hub in the Gulf.

The deal was set in motion by Abu Dhabi-owned asset manager Lunate’s agreement to acquire a minority stake in Brevan Howard and commit the funds to launch a new investor platform.

Lunate, which has more than $100 billion under management and is backed by Abu Dhabi’s ADQ and Chimera Capital – investment arms tied to Sheikh Tahnoun bin Zayed – said the partnership is designed to strengthen the city’s role as a global hub for alternative investments.

The venture will be based in the Abu Dhabi Global Market, the emirate’s international financial center, and will oversee funds tailored to global investors. 

London-based Brevan Howard, which manages more than $35 billion worldwide and is best known for its macro trading and digital asset strategies, will contribute its investment expertise and client base to the new platform.

Brevan Howard’s founder, Alan Howard, said in a statement that the partnership “reflects our deep and ongoing commitment to the region.”

BlackRock joins Abu Dhabi’s IHC in $1 billion reinsurance venture

Wall Street titan BlackRock is teaming up with Abu Dhabi’s International Holding Co. to create a $1 billion reinsurance firm with its foundations in AI.

The venture announced Thursday is one of a cavalcade of deals that are being cooked up amid Trump’s tour of the Gulf next week, which will take him to Saudi Arabia on Tuesday, followed by Qatar and the UAE.

BlackRock, the world’s largest alternative investment firm, and Abu Dhabi asset manager Lunate will join as minority partners, according to a statement issued by IHC.

The new company will be chaired by Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of ADNOC. Mark Wilson, the former chief executive of Aviva and AIA Group, will serve as CEO.

Lunate, which was founded two years ago and manages $110 billion, will provide expertise in private and public markets to the reinsurance company, which will operate from the capital city’s free zone financial center, ADGM.

Also in the run-up to the Trump visit, the U.S. is developing a fast-track process for screening foreign investments, which could smooth the process for sovereign wealth funds such as the Saudi Public Investment Fund, the UAE’s Mubadala, and the Qatar Investment Authority to sign contracts next week, Bloomberg reports.

Abu Dhabi’s Lunate weighs buying stake in HPS Investment

Lunate, the upstart $105 billion asset manager fueled by Abu Dhabi sovereign wealth, is mulling an investment in the fast-growing private credit market.

The firm, launched in January by Sheikh Tahnoon bin Zayed’s International Holding Co. may buy a minority stake in New York-based HPS Investment Partners, which itself is considering an IPO or sale, Bloomberg reports.

Lunate is evaluating an investment of $1 billion or more in HPS, according to the news agency, which says the company is also entertaining interest from BlackRock and private equity firm CVC Capital Partners.

The origins of Lunate trace back to two of Abu Dhabi’s most active holding companies, IHC and sovereign wealth fund ADQ.

It was in March 2023 that IHC announced plans to establish a multi-asset class investment manager, which later became Lunate, and bring on U.S. private equity firm General Atlantic as a strategic partner and investor.

Lunate’s $105 billion in assets make it an overnight MENA powerhouse

Nearly six months after its New Year’s Day launch, Abu Dhabi-based Lunate has emerged as a major player in the MENA investment landscape.

Starting as a $50 billion alternative investment manager with a pedigree from the upper reaches of the Royal Court, the firm has more than doubled its assets under management and now deploys $105 billion in capital.

Most recently, Lunate announced the launch of the Chimera S&P Japan UCITS ETF, an exchange-traded fund to track Japan’s top 30 equities, listing on the Abu Dhabi Securities Exchange as of May 29.

The origins of the fund trace back to two of Abu Dhabi’s most active holding companies, sovereign wealth fund ADQ and the emirate’s largest publicly traded conglomerate International Holding Co. It was in March 2023 that IHC announced plans to establish a multi-asset class investment manager and bring on U.S. private equity firm General Atlantic as a strategic partner and investor.

“Lunate was launched as a combination of ADQ’s, ADG’s and Chimera’s capabilities around alternative investments in both public markets and private markets,” Diego López, Managing Director of Global SWF, told The Circuit.

Lunate’s holdings cover early-stage venture capital investments to growth and scale-up equity, through to mature and established businesses. The firm is a subsidiary of Chimera, which is owned by The Royal Group, IHC’s largest shareholder.

Both ADQ and IHC are chaired by Sheikh Tahnoon bin Zayed, the UAE’s National Security Adviser and the brother of UAE President Sheikh Mohammed bin Zayed. Lunate declined to comment for this story. 

Since launching, Lunate has integrated ADQ’s alternatives portfolio, valued at $34 billion, along with the Abu Dhabi Growth Fund (ADG) and Chimera Capital. It charges fees and pays dividends to ADQ, with 70% of these dividends reinvested back into Lunate, according to Global SWF, although the size of ADQ’s stake is unclear.

Lunate has a conventional if vast mandate: to generate risk-adjusted returns through multi-asset class investments in both private and public markets to institutional investors, pension funds, family offices and other investment firms. The firm invests globally through a combination of limited partner commitments, co-investments and direct investments across private equity, venture capital, private credit, real assets, public equities and public credit.

Its venture capital portfolio includes Indian startups like fintech firms epifi and Zeta and fantasy sports platform Dream 11 as well as stakes in U.S. learning platform Coursera and Dubai proptech firm Huspy, among others.

Lunate is licensed by the ADGM Financial Services Regulatory Authority and occupies a new office tower on Al Maryah Island in Abu Dhabi. With a headcount of 150, its managing partners are former C-suite from Lunate stakeholders: Khalifa Al Suwaidi is the former CEO of the Abu Dhabi Growth Fund; Murtaza Hussain is the former CIO of ADQ – and prior to that was a managing director at the collapsed private equity fund Abraaj – as well as Seif Fikry, the former CEO of Chimera Capital.

ADQ’s ESG initiatives are managed by Altérra, a subsidiary of Lunate. Altérra launched a $30 billion climate fund during COP28 in December 2023, with backing from BlackRock, Brookfield and TPG. ADQ contributed 22% of Altérra’s holdings when it launched.

Earlier this month, Altérra made its first fund announcement, tying up with New York-listed Brookfield Asset Management to invest in clean energy projects in emerging markets. Altérra plans to invest $1 billion in the Catalytic Transition Fund, which will be managed by Brookfield and is expected by the end of the year.

“Different initiatives make sense in different countries and different contexts,” Lopez said. “The ‘Abu Dhabi approach’ has always been about having different vehicles for different mandates.”