Abu Dhabi’s Money Machine Marches On: Introducing Lunate

Abu Dhabi

Abu Dhabi, the glittering capital of the United Arab Emirates and a global financial powerhouse, continues to make waves in the world of sovereign wealth funds. With assets worth around $1.5 trillion under its watchful eye, the city has recently added a significant player to its already impressive roster. Meet “Lunate,” a new $50 billion behemoth in the realm of alternative investments.

Derived from the Latin word “lunatus,” meaning crescent-shaped, Lunate signifies Abu Dhabi’s ambition to shape the future of investments on a global scale. The fund will be steered by three managing partners hailing from Abu Dhabi entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan. This visionary initiative is brought to life through the efforts of Chimera Investment, which falls under the expansive royal conglomerate of Sheikh Tahnoon.

Chimera Investment, together with one of its subsidiaries, manages a colossal portfolio of assets valued at nearly $20 billion. Earlier this year, the firm was integrated into Sheikh Tahnoon’s colossal $240 billion empire, International Holding Company (IHC). The move was heralded by IHC, the largest listed company in the UAE, as laying “the foundation for the development of a regional champion.”

Abu Dhabi has consistently defied expectations, demonstrating remarkable influence in global dealmaking despite its relatively modest size. The establishment of Lunate aligns perfectly with its aspirations to bolster its already substantial clout. Sheikh Tahnoon’s entities have strategically positioned themselves at the forefront of this endeavor, exemplified by their early considerations to acquire financial giants Standard Chartered and Lazard at the beginning of the year.

The announcement of this new fund follows closely on the heels of IHC and Abu Dhabi’s formidable wealth fund, ADQ, revealing their plans to embark on a new investment venture in partnership with alternative asset management giant, General Atlantic. It’s worth noting that General Atlantic is not directly involved in the Lunate initiative, as reported by Bloomberg News.

Of course, Abu Dhabi is no stranger to diversification efforts aimed at reducing its dependency on hydrocarbons. The city boasts an array of financial vehicles, from the world-renowned Abu Dhabi Investment Authority to Mubadala Investment and ADQ, each dedicated to the noble pursuit of diversifying the economy.

At the helm of many of these strategic investments is Sheikh Tahnoon, a distinguished figure in the UAE, serving not only as the brother of the country’s ruler but also as its national security adviser. His influence extends far beyond borders, ensuring that Abu Dhabi’s financial footprint continues to expand and diversify.

However, it’s not just Sheikh Tahnoon’s vehicles that have been making headlines recently. In a display of Abu Dhabi’s commitment to global investments, Mubadala committed a staggering $1 billion to Blue Owl Capital’s private credit platform, solidifying the city’s position as a major player in the international financial arena.

Abu Dhabi’s money machine is indeed marching on, and the introduction of Lunate is yet another testament to its unwavering commitment to shaping the future of global finance. As the world watches closely, it is abundantly clear that this dynamic city is poised to remain a dominant force in international investments for years to come.