ADQ and IHC to create a leading independent investment manager in the MENA region
March 6, 2023
General Atlantic to join as strategic investor and partner
- New independent investment manager plans to launch a series of multi-asset class funds to invest in Private Equity, Venture Capital, Credit and Public Equities
- Investment funds will be managed by the newly created investment manager based in Abu Dhabi comprising of a bespoke combination of ADQ, ADG and IHC investment professionals who bring deep expertise, track records and valued partnerships
- New investment manager will offer genuine scale and access to a global investment pipeline; structured to raise and manage third party capital
Abu Dhabi – March 6: ADQ, an Abu Dhabi-based investment and holding company, and International Holding Company (ADX: IHC), a global diversified Abu Dhabi-based conglomerate, announced today their intention to create the region’s largest multi-asset class investment manager, headquartered in Abu Dhabi.
Upon launch, the investment manager will manage a portfolio of assets from ADQ’s Alternative Investments platform, Abu Dhabi Growth Fund (ADG) and IHC as well as fresh capital from founding shareholders and future investors to deploy globally. It is expected that all ADQ, ADG and IHC’s capital earmarked for alternative investments will be deployed by the new investment manager. General Atlantic, a leading global growth equity firm, will join as a strategic investor and partner bringing to bear its longstanding track record and commitment to investment excellence.
The investment manager, through a series of new funds, will make investments in alternative assets, including private equity, venture capital, private credit and public equities. It will invest through a combination of LP commitments to top tier global funds (i.e., fund of funds strategy), direct investments (incl. Private Equity and Venture Capital), credit and co-investments.
H.E. Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, said: “Today’s announcement demonstrates our intention to create the largest independent alternative investment manager from the region that will serve global markets, with a clear remit to maximize long-term returns. Together with IHC, we will consolidate investment talent, expertise, and capabilities with scale and firepower to deliver long-term value in a rapidly evolving market.”
The investment philosophy of the manager will be underpinned by a fundamentally driven, high conviction approach to invest across multiple sectors and geographies to achieve superior risk adjusted returns for its investors. The funds will invest across the capital structure and asset life cycle, covering early-stage venture capital to growth and scale-up equity, through to mature and established businesses.
Commenting on the joint venture Syed Basar Shueb, CEO of IHC, said “Research is showing the global market for alternative investments will continue to grow in the next five years. With these positive indicators, we believe there is a compelling opportunity to invest at scale. There is no doubt this new joint venture will enable the new investment manager to access a diversified regional and global pipeline of investments, manage long-term capital on behalf of its investors, and become a leading institutional investor and partner of choice.”
The investment manager will leverage the existing valued relationships and partnerships with global GPs that ADQ, ADG and IHC have nurtured and will benefit from having continuity in key areas of the investment strategy and team.
At launch, the investment manager will manage funds 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 firms. The new company will bring genuine scale and a proprietary pipeline of global investment opportunities.
General Atlantic brings more than four decades of investment experience creating and scaling businesses, with significant company-building capabilities. The firm will provide strategic support as the business seeks to capture the opportunity set ahead.
William E. Ford, Chairman and CEO of General Atlantic, added: “General Atlantic has been investing in the Middle East since 2015 and we are committed to further deepening our engagement in the region. We are proud to join as an anchor investor and strategic partner to support ADQ and IHC in establishing a leading global alternative investment and wealth manager from 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 primary hub in Abu Dhabi, with the intention of adding further international offices in North America, Europe and Asia. It will be led by a highly experienced investment team drawn from ADQ’s Alternative Investments platform, ADG and IHC.
With rapidly maturing capital markets, deep pools of liquidity, and a sophisticated investor ecosystem that combines diligence with sector expertise to determine optimal asset allocation strategies, Abu Dhabi’s financial services industry is at an inflection point. The launch of the new manager is strategically timed to capitalize on these secular trends and drive value for its shareholders and partners.
Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
About International Holding Company (IHC)
IHC was founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE and has grown to become the most valuable listed holding company in the Middle East with a market cap of AED 648 billion as of Sep 30, 2022. The company endeavors to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates. IHC is included in FTSE ADX 15 Index (FADX 15), representing the top 15 largest and most liquid companies on the ADX.
IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 422 subsidiaries and 82,000 employees, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate Developments, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.
With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximizes cost efficiencies across all verticals – it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad. As the world changes and new opportunities arise, IHC remains focused on resilience, innovation, and redefining the marketplace for itself, its clients, and its partners.
About General Atlantic
General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 495 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic has more than $72 billion in assets under management inclusive of all products as of December 31, 2022, and more than 220 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Miami, Mumbai, Munich, San Francisco, São Paulo, Shanghai, Singapore, Stamford and Tel Aviv. For more information on General Atlantic, please visit: www.generalatlantic.com.
Emily Japlon & Gurion Kastenberg
General Atlantic [email protected]