Lunate, a global alternative investment manager based in Abu Dhabi with $110 billion in assets under management (AUM), has partnered with Brevan Howard, a top hedge fund manager with $34 billion AUM. Announced on Tuesday, this strategic long-term partnership aims to create a new investment platform in the Abu Dhabi Global Market (ADGM), pending regulatory approval.
The venture will begin with a $2 billion long-term investment from Lunate and will feature a distinctive array of newly developed funds specific to this alliance. These funds will capitalize on Brevan Howard’s existing strategies and investment expertise, focusing on macro and digital assets. Over time, more capital is expected to be sourced from both local and international investors.
Lunate will also acquire a minority stake in Brevan Howard, signaling its strategic move into hedge funds and expanding its product and investment offerings for clients in the GCC and worldwide.
Over the past two decades, Brevan Howard has strategically expanded and enhanced its capabilities across various asset classes. In early 2023, Brevan Howard established a regional headquarters in ADGM, which has become its largest office in terms of assets managed globally.
Founded in 2002 by Alan Howard and a group of traders from Credit Suisse, Brevan Howard manages around $34 billion, focusing on global economic disparities. Under CEO Aron Landy, its clientele includes sovereign wealth funds and corporate and public pension plans, boasting an annualized return rate of 8.1% since 2003, as per Reuters.
This agreement marks the latest venture into asset management by Abu Dhabi, which has increasingly attracted the industry due to the influx of millionaires and the presence of top sovereign wealth funds.
Situated in ADGM, a burgeoning hub for regional and international asset management firms, the partnership aims to bolster the Emirate’s aspiration to become a leading global financial center, creating opportunities for elite talent and leveraging ADGM’s top-tier infrastructure, global connectivity, and progressive regulatory framework to deliver client value.
Khalifa Al Suwaidi, Managing Partner at Lunate, stated, “Our partnership with Brevan Howard marks our entry into hedge funds and underscores our dedication to collaborate with top investment firms globally, providing our clients with access to unique strategies to diversify their portfolios further.”
Alan Howard, Brevan Howard’s Founder, commented, “Our long-term partnership with Lunate signifies our ongoing commitment to the region, and we look forward to building on this foundation in the future.”
