Abu Dhabi – Mubasher: Investment and holding company ADQ has teamed up with International Holding Company to create the largest multi-asset class investment manager in the MENA region.
The investment manager, which will be headquartered in Abu Dhabi, is set to manage a portfolio of assets from ADQ’s Alternative Investments platform, Abu Dhabi Growth Fund (ADG), and IHC. This will be in addition to fresh capital from founding shareholders and future investors to deploy worldwide.
All ADQ, ADG, and IHC’s capital earmarked for alternative investments will likely be deployed by the new investment manager, according to a press release.
Global growth equity firm General Atlantic will join as a strategic investor and partner.
Through a series of new funds, the new entity will make investments in alternative assets, such as private equity, venture capital (VC), private credit, and public equities. The funds will be allocated across the capital structure and asset life cycle while covering early-stage venture capital to growth and scale-up equity.
Managing Director and CEO of ADQ, Mohamed Hassan Alsuwaidi, said: “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.”
CEO of IHC, Syed Basar Shueb, noted: “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.”
The investment manager at launch will manage funds on behalf of its founding shareholders, ADQ and IHC, and will be structured to raise and manage third-party capital, whether from institutional investors, pension funds, family offices, or other private and public firms.
Chairman and CEO of General Atlantic, William Ford, added: “General Atlantic has been investing in the Middle East since 2015 and we are committed to further deepening our engagement in the region.”
Ford added: “This new investment manager will play an important role in strengthening Abu Dhabi’s position as an emerging global financial center.”
Following the primary hub in Abu Dhabi, the investment manager will establish further international offices in North America, Europe, and Asia.
In 2022, the preliminary financial results of IHC indicated a net profit of AED 31.86 billion, compared to AED 11.57 billion in 2021.
The earnings per share (EPS) increased to AED 6.11 last year from AED 4.03 in 2021, while the revenues soared to AED 50.41 billion from AED 28.56 billion.
The total assets of IHC jumped to AED 227.50 billion at the end of December 2022, compared to AED 88.98 billion in the same period a year earlier.
It is worth noting that IHC carried out its first business acquisition in 2023 through the purchase of 55% equity in Reach Employment Services for AED 315 million.