(Nov 19): Two years after bursting onto Abu Dhabi’s investment scene, Lunate has transformed itself into a prolific dealmaker, striking partnerships with Wall Street heavyweights and placing bets on the likes of OpenAI. After deploying roughly US$13.5 billion, the firm is now signalling increased ambition.
The asset manager raised about US$17 billion in 2024 for its flagship funds and has invested around 80% of this, according to people familiar with the matter, declining to be identified as the information is confidential. It will raise a higher amount for funds launching in 2026, the people said.
A representative for the firm declined to comment on fundraising plans.
Khalifa Al Suwaidi, one of Lunate’s managing partners, said the firm is drawing strong deal flow and growing inbound interest to manage third-party capital.
Abu Dhabi’s skyline
The firm manages capital for a range of institutions and family offices. It counts Abu Dhabi sovereign wealth fund ADQ and Chimera Investment, which are both ultimately overseen by Sheikh Tahnoon bin Zayed Al Nahyan, as anchor limited partners.
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Lunate’s three managing partners hold stakes in the firm, which describes itself as independently-managed with Chimera Investment as a majority owner. It oversees US$115 billion in assets and has done over 100 deals since inception, making it the region’s largest and one of the world’s fastest-growing asset managers.
Its rise comes as many regional institutional investors narrow their relationships with private equity firms and commit capital to a select few. Abu Dhabi’s latest entrant is pursuing a different path.
Al Suwaidi said Lunate has relationships with more than 100 general partners. “We’ve built a distinctive dual capability: accessing best-in-class fund opportunities as an LP and independently underwriting co-investment opportunities from these GPs,” he said.
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Lunate works with many of the world’s largest firms including BlackRock Inc, Blackstone Inc, CVC Capital Partners plc, and Brookfield Asset Management. It commits capital both as a limited partner and as a general partner. Over 70 of its transactions have been direct deals and co-investments with other general partners, and it has acted as a limited partner on more than 30 fund investments.
Lunate’s arrival on the Abu Dhabi stage coincided with a surge of interest in the Middle East from private equity firms. While the region has long been viewed as a source of funds, many outfits now have investment professionals on the ground as they look to deploy capital.
Lunate sits alongside Abu Dhabi’s sovereign wealth funds, which control US$1.7 trillion between them and splash out billions every year on everything from finance, sports, technology and health care. Its emergence also helps advance the emirate’s long-standing ambition to be a global contender in finance, a goal that has previously led entities overseen by Sheikh Tahnoon to examine deals for institutions like Standard Chartered plc and Lazard Ltd.
Now nearly twice the size of Investcorp Holdings, the other Gulf alternatives giant, Lunate employs more than 250 people. Its six-member investment committee reviews hundreds of opportunities and eventually commits capital to a small proportion of that.
That group includes three senior partners and three managing partners: Al Suwaidi, who has held senior positions at multiple Abu Dhabi entities, including ADQ; Seif Fikry, formerly the chief executive officer of Chimera Capital; and Murtaza Hussain, previously chief investment officer at ADQ.
Once transactions are approved, Lunate deploys capital via four flagship strategies, including fund investments, direct and co-investments, long-term capital as well as special opportunities. It has also launched niche strategies with general partners including Blackstone, Blue Owl Capital Inc, Brookfield and HPS Investment Partners.
Al Suwaidi said Lunate’s partnerships with global managers are a core strength, enabling the firm to scale faster.
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OpenAI, CoreWeave
In the two years since it was set up, Lunate has poured money into OpenAI, and invested in cloud-computing provider CoreWeave Inc’s senior and mezzanine debt, deals that dovetail into Abu Dhabi’s push into AI.
It has also backed Clayton Dubilier & Rice’s buyout of Sanofi’s €16 billion over-the-counter drugs business, and partnered with Brookfield on the €6.1 billion take private of French renewable energy developer Neoen SA.
While those transactions haven’t previously been disclosed, a few eye-catching forays have been made public, including a stakes in hedge fund Brevan Howard Asset Management and ICD Brookfield, the most prominent office tower in Dubai’s financial hub.
Lunate has also inked a series of partnerships, including a US$5 billion regional logistics-focused platform with Blackstone. And it has backed private equity firm CVC’s IPO and holds a stake in the National Stock Exchange of India Ltd, seen as a potential candidate for a listing next year.
That breadth of its investments is seen internally as a key strength.
“Each asset class has distinct cycles and unique risk-return profiles,” Al Suwaidi said. “Being multi-asset class allows us to generate alpha by capitalizing on these dynamics across private markets.”
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