Abu Dhabi’s Lunate has launched a new venture focused on the Asia-Pacific region, part of the $105 billion asset management company’s efforts to boost its exposure to faster-growing markets, reported by Bloomberg.
The new investment fund, Axight, will focus largely on private equity deals in the Asia-Pacific region, according to people familiar with the matter, who declined to be identified because the information is confidential. Axight plans to raise outside capital over time, they said, without disclosing the initial size of the venture. Lunate officials declined to comment.
Chimera Investment LLC
Lunate is a subsidiary of Chimera Investment LLC, and sovereign wealth fund ADQ is a major client. Both Chimera and ADQ are part of the business empire of Abu Dhabi’s ruler Sheikh Tahnoun bin Zayed Al Nahyan. The private markets-focused investment manager previously set up Alterra, a climate investment fund, with an initial commitment of $30 billion from the United Arab Emirates.
Bloomberg News reported in July that it had taken over management of artificial intelligence firm G42’s China-focused fund, which holds stakes in tech companies including ByteDance Ltd. and JD.com Inc. Lunate has made several other deals since its inception in 2023, including an investment in Dubai’s glittering office tower ICD Brookfield Place. It also agreed to buy a 40% stake in Abu Dhabi National Oil Co.’s pipeline network and acquire a minority stake in Adnoc’s gas pipeline business. Abu Dhabi has launched several investment vehicles in the past couple of years, including MGX, an investor in artificial intelligence and advanced technology, and XRG for international gas, chemicals and low-carbon energy assets.
Adnoc Pipeline Network
BlackRock Inc. and KKR & Co. have sold their 40% stake in Adnoc Pipeline Network to an Abu Dhabi firm five years after acquiring the asset in a deal that marks the first investment by foreign asset managers in infrastructure at the state-owned Gulf energy company. The companies sold their assets to a company called Lunate, which has $105 billion in assets under management, according to a statement. Terms were not disclosed, although Bloomberg News previously reported that the stake could fetch more than $4 billion, including debt.
Lunate is a growing player in Abu Dhabi, an emirate that has leveraged its energy wealth to become a major force in the investment landscape. The city is home to investment funds Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, which control assets totaling more than $1 trillion.