Key Takeaways
- • Lunate, an Abu Dhabi-based investment manager overseeing $110 billion in assets, has invested $2 billion into hedge fund firm Brevan Howard and acquired a minority stake in the firm, establishing a strategic long-term partnership.
- • The partnership will create an exclusive suite of new funds domiciled in the Abu Dhabi Global Market (ADGM), leveraging Brevan Howard's established strategies in global macro and digital assets to serve local and international investors.
- • Brevan Howard, managing $34 billion in assets under management and founded in 2002, has positioned its ADGM regional office (established in early 2023) as its largest office globally, reflecting the firm's deepening commitment to the Gulf region.
- • Additional capital is expected to be raised over time from both local and international investors, signaling an expansion phase for the newly formed platform within Abu Dhabi's regulatory ecosystem.
- • The deal exemplifies a broader trend of Gulf sovereign wealth and alternative investment managers diversifying revenue streams by acquiring stakes in global financial services and hedge fund operations.
Summary
Lunate, an Abu Dhabi-based alternative investment manager with $110 billion in assets under management, has acquired a minority stake in London-founded hedge fund Brevan Howard through an initial $2 billion investment. The partnership, announced on 27 August 2025, establishes a new investment platform domiciled within the Abu Dhabi Global Market (ADGM), marking Lunate's strategic expansion into hedge fund management and reflecting the firm's mandate to serve Abu Dhabi sovereign investor ADQ alongside other institutional clients.
The partnership structure centers on creating an exclusive suite of new funds that will utilize Brevan Howard's proven investment strategies, particularly in global macro and digital assets. Brevan Howard, which has operated for over two decades with $34 billion in assets under management, established its ADGM regional headquarters in early 2023 and has since grown it into the firm's largest office by assets managed globally. This infrastructure positions both firms to capitalize on institutional demand within the Gulf and broader international markets.
Khalifa Al Suwaidi, managing partner at Lunate, stated that the partnership "marks our expansion into hedge funds and reflects our commitment to work with the best investment firms in the world, offering our clients access to unique strategies to further diversify their portfolios." Brevan Howard founder Alan Howard echoed the long-term focus, noting that the partnership "reflects our deep and ongoing commitment to the region." The arrangement includes expectations for additional capital raises from both local and international investors over time, suggesting a phased growth strategy for the newly formed platform.
This transaction reflects a broader strategic shift among Gulf state sovereign wealth and alternative investment vehicles toward acquiring equity stakes in established global asset managers, financial services firms, and banking platforms. By securing minority ownership in Brevan Howard alongside direct fund capital commitments, Lunate gains both operational influence over hedge fund strategy and revenue diversification benefits—a model increasingly adopted by Abu Dhabi's institutional investors seeking to build indigenous wealth management capabilities while accessing world-class investment platforms.
The partnership structure centers on creating an exclusive suite of new funds that will utilize Brevan Howard's proven investment strategies, particularly in global macro and digital assets. Brevan Howard, which has operated for over two decades with $34 billion in assets under management, established its ADGM regional headquarters in early 2023 and has since grown it into the firm's largest office by assets managed globally. This infrastructure positions both firms to capitalize on institutional demand within the Gulf and broader international markets.
Khalifa Al Suwaidi, managing partner at Lunate, stated that the partnership "marks our expansion into hedge funds and reflects our commitment to work with the best investment firms in the world, offering our clients access to unique strategies to further diversify their portfolios." Brevan Howard founder Alan Howard echoed the long-term focus, noting that the partnership "reflects our deep and ongoing commitment to the region." The arrangement includes expectations for additional capital raises from both local and international investors over time, suggesting a phased growth strategy for the newly formed platform.
This transaction reflects a broader strategic shift among Gulf state sovereign wealth and alternative investment vehicles toward acquiring equity stakes in established global asset managers, financial services firms, and banking platforms. By securing minority ownership in Brevan Howard alongside direct fund capital commitments, Lunate gains both operational influence over hedge fund strategy and revenue diversification benefits—a model increasingly adopted by Abu Dhabi's institutional investors seeking to build indigenous wealth management capabilities while accessing world-class investment platforms.
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