Abu Dhabi’s Lunate Asset Management has made headlines this year, completing 25 investments valued at $5 billion in a strategic push to establish itself as a major player in the global investment landscape. Officially launched in January, Lunate is ambitiously positioning itself to deploy between $8 billion and $10 billion annually, appealing to money managers eager to attract new clients.
Under the leadership of Managing Partner Khalifa al-Suwaidi, Lunate’s investments span a diverse array of sectors, including stakes in prominent companies like private equity firm CVC and India’s National Stock Exchange. This deal-making initiative aligns with Abu Dhabi’s vision to bolster its status as a financial hub, promoting itself as the “Capital of Capital” and encouraging foreign hedge funds and asset managers to establish operations within its financial center.
Lunate operates with significant backing from Abu Dhabi’s sovereign wealth fund, ADQ, and is also supported by Chimera Investment, part of the extensive business empire of Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s national security adviser. While Abu Dhabi boasts several notable sovereign funds, including Adia and Mubadala, Lunate aims to carve out a niche as an independently managed entity, attracting a wide client base.
Currently managing approximately $105 billion in assets, Lunate’s portfolio includes both the investments made this year and future commitments from ADQ, which total around $47 billion. Additionally, Lunate oversees a substantial alternative investments portfolio for ADQ, valued at approximately $34 billion, along with legacy investments managed for Chimera.
Despite its rapid rise, some industry insiders question the level of independence Lunate truly possesses. Skepticism surrounds the firm’s close ties to Abu Dhabi’s sovereign funds, with some suggesting that Lunate may merely be another extension of sovereign wealth initiatives. Suwaidi, however, emphasizes the firm’s independence, citing a diverse clientele that extends beyond ADQ and Chimera, although he refrained from disclosing names due to confidentiality agreements.
The firm has also ventured into sustainability through its ownership of Alterra, a $30 billion climate fund in partnership with global entities such as BlackRock and TPG. This highlights Lunate’s commitment to not only financial returns but also environmental responsibility.
As Lunate continues to navigate the complexities of asset management, it remains focused on capitalizing on opportunities across various sectors. With nearly 200 employees, the firm has evaluated over 550 potential transactions this year, selectively choosing 25 investments. Suwaidi mentioned that Lunate’s typical investment ranges between $100 million and $300 million, with a strong emphasis on the financial services sector.
In summary, Lunate Asset Management is on a transformative journey, seeking to reshape Abu Dhabi’s investment landscape while striving for independence and innovation. As the firm expands its footprint, it aims to solidify its role as a local champion in the global asset management arena.
