Abu Dhabi’s Chimera Capital closes second venture capital fund with $10 billion

Abu Dhabi investment company Chimera Capital said Tuesday that it closed a second venture capital (VC) invests $10 billion as it looks to find multi-million dollar opportunities in “growth stage” companies.

new fund, Alpha Wave Ventures II, will focus on fintech, artificial intelligence, life sciences, consumer internet and business-to-business sectors. Chimera said. The $10 billion fund is co-managed with U.S. alternative asset manager Alpha Wave Global (formerly Falcon Edge Capital).

“Put them all together and you have a large fund that basically invests at a larger scale in the underlying growth story,” said Karim Radwan, chief investment officer at Chimera Capital.

Radwan said the limited partners of the venture capital fund are all local and regional investors, but declined to name them. He said the fund would invest tens of millions to $100 million in growth-stage companies, typically between Series A and pre-IPOs.

Chimera Capital is owned by Chimera Investments LLC, part of the Royal Group, an Abu Dhabi investment firm led by Sheikh Tahnoun bin, the United Arab Emirates’ national security adviser and brother of its de facto ruler, Crown Abu Dhabi Zayed Al Nahyan chairs Prince Mohammed bin Zayed.

Its first fund, Chimera Global Fund I, closed at $75 million in October with participation from Mubadala Capital, part of Abu Dhabi’s sovereign wealth fund Mubadala Investment Company. Chimera Investments contributed $25 million to the fund.

Its investments include U.S. education technology companies course hero, Egyptian Transportation Technology Company rotate and Indian fintech company Zeta.

Alpha Wave Ventures II is targeting returns of three to five times, with companies lower in this range getting closer initial public offering, Radwan said.

“So, a bit of a risk adjustment. Clearly the early-stage companies have higher returns, but they also obviously have higher risk.”