Abu dhabi: Lunate, an Abu Dhabi-based global alternative investment manager with US$110 billion in assets under management (AUM), and Brevan Howard, a prominent hedge fund manager with AUM of US$34 billion, have announced a strategic long-term partnership to establish an investment platform in the Abu Dhabi Global Market (ADGM), pending regulatory approval.

According to Emirates News Agency, the partnership will launch with an initial US$2 billion commitment from Lunate and will feature a unique suite of newly created funds exclusive to the partnership. These funds aim to leverage Brevan Howard’s existing strategies and investment capabilities, including macro and digital assets. Additional capital is anticipated to be raised over time from both local and international investors.

Lunate will acquire a minority stake in Brevan Howard as part of its strategic expansion into hedge funds, diversifying its range of products and investment solutions for clients in the GCC and globally. Brevan Howard has strategically grown over two decades, enhancing its capabilities in various asset classes. The firm established a regional headquarters in ADGM in early 2023, which has become its largest office by assets managed globally.

Located in ADGM, a burgeoning hub for asset management firms, the partnership will support Abu Dhabi’s ambition to emerge as a leading financial center and create opportunities for top-tier talent. It will utilize ADGM’s infrastructure, global connectivity, and regulatory framework to deliver value to clients.

Khalifa Al Suwaidi, Managing Partner at Lunate, expressed that the partnership marks Lunate’s expansion into hedge funds, emphasizing their commitment to collaborate with leading investment firms worldwide to offer clients unique diversification strategies. Alan Howard, Founder of Brevan Howard, highlighted the partnership as a reflection of their commitment to the region, with intentions to build on this foundation over time.