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Tuesday, May 30, 2023

ADQ and IHC to Create Largest Investment Management Firm in MENA Region

ADQ, an Abu Dhabi-based investment and holding company, and International Holding Company (IHC), an Abu Dhabi-based global diversified conglomerate, have announced their intention to create the largest multi-asset class investment manager in the region, headquartered in Abu Dhabi .

The investment manager will upon launch manage a portfolio of assets from ADQ’s alternative investment platform, Abu Dhabi Growth Fund (ADG) and IHC, as well as fresh capital from founding shareholders and future investors, for global deployment, a statement said.

All funds earmarked by ADQ, ADG and IHC for alternative investments are expected to be deployed by the new investment manager. General Atlantic, a leading global growth equity firm, will join as a strategic investor and partner, continuing its long track record and commitment to investment excellence.

The investment manager will invest in alternative assets through a range of new funds, including private equity, venture capital, private credit and public equity. It will invest through a combination of limited partner commitments to top global funds (i.e. Fund of Funds strategy), direct investments (including private equity and venture capital), credit and co-investments.

Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “Today’s announcement demonstrates our intention to create the largest independent alternative investment manager in the region, servicing markets globally with a clear commitment to maximizing long-term returns. We will Together with IHC, we are bringing together investment talent, expertise and capabilities with the scale and firepower to deliver long-term value in a rapidly evolving market.”

The Manager’s investment philosophy will be based on a fundamentals-driven, high conviction approach, investing across multiple industries and geographies to achieve superior risk-adjusted returns for investors. The funds will invest in capital structures and asset lifecycles, spanning early-stage venture capital, growth and scaling equity, through to mature and established businesses.

Commenting on the joint venture, Syed Basar Shueb, CEO of IHC, said: “Research shows that the global alternative investment market will continue to grow over the next five years. With these positive indicators, we believe there is a compelling investment opportunity at scale. There is no doubt that this new joint venture will enable the new investment manager to gain access to a diversified regional and global investment pipeline, manage long-term capital on behalf of its investors, and become a leading institutional investor and partner of choice.”

The Investment Manager will leverage ADQ, ADG and IHC’s existing valuable relationships and partnerships with global GPs and will benefit from continuity in key areas of the investment strategy and team.

At launch, the investment manager will manage the fund on behalf of its founding shareholders, ADQ and IHC, and is structured to enable it to raise and manage third-party capital, including from institutional investors, pension funds, family offices and other private and public capital firms. The new company will bring true scale and an exclusive access to global investment opportunities.

General Atlantic has over four years of investment experience in creating and scaling businesses, with strong company-building capabilities. The company will provide strategic support as businesses seek to seize future opportunities.

William E Ford, Chairman and Chief Executive Officer of General Atlantic, added: “General Atlantic has invested in the Middle East since 2015 and we are committed to further deepening our engagement in the region. We are proud to serve as anchor investor and strategic The partners join in supporting ADQ and IHC in establishing a leading global alternative investment and wealth management firm in the region. This new investment manager will play an important role in strengthening Abu Dhabi’s position as an emerging global financial center.”

The investment manager will establish its main center in Abu Dhabi and intends to add more international offices in North America, Europe and Asia. It will be led by an experienced investment team from ADQ’s alternative investment platform ADG and IHC.

With rapidly maturing capital markets, deep liquidity pools, and an established investor ecosystem combining diligence and industry expertise to determine optimal asset allocation strategies, Abu Dhabi’s financial services industry is at a turning point. The new manager is strategically placed to capitalize on these long-term trends and create value for its shareholders and partners, the statement said. –trade arab news agency

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