Lunate and Brevan Howard Launch Investment Platform

Lunate, an Abu Dhabi-based global alternative investment manager with $110 billion in assets under management (AUM), and Brevan Howard, one of the world’s most successful hedge fund managers with AUM of $34 billion, have announced the formation of a strategic long-term partnership to establish an investment platform to be domiciled in the Abu Dhabi Global Market (ADGM), subject to regulatory approval.

The partnership plans to launch with an initial long-term commitment of $2 billion from Lunate and will comprise a unique suite of newly created funds exclusive to the partnership. These funds will leverage Brevan Howard’s existing strategies and investment capabilities, including macro and digital assets. Additional capital is expected to be raised over time from local and international investors.

Lunate will also acquire a minority ownership stake in Brevan Howard, marking its strategic expansion into hedge funds and diversifying its range of products and investment solutions for clients in the GCC and across the world.

Brevan Howard has grown strategically over two decades, adding and enhancing its capabilities in asset classes. Brevan Howard established a regional headquarter office in ADGM in early 2023, which is now their largest office by assets managed globally.

Domiciled in ADGM, a growing hub for regional and international asset management firms, the partnership will support the Emirate’s ambition to become one of the world’s leading financial centers and create opportunities for top-tier talent. It will leverage ADGM’s world-class infrastructure, global connectivity and progressive regulatory framework to deliver value to clients.

Lunate Managing Partner Khalifa Al Suwaidi said that their new partnership with Brevan Howard marks Lunate’s expansion into hedge funds and reflects their commitment to work with the best investment firms in the world, offering their clients access to unique strategies to further diversify their portfolios.

Brevan Howard’s Founder Alan Howard added: “The long-term partnership with Lunate reflects our deep and ongoing commitment to the region and we look forward to building on this foundation over time.”

UAE’s Regulations Sensible

Cryptopolitan reported that Brevan Howard established a regional headquarter office in ADGM in early 2023, which is now their largest office by assets managed globally. During the AIM Conference held last year in Dubai, Brevan Howard noted that it does a significant amount of its crypto trading from the UAE.

Ryan Taylor, Group head of compliance at Brevan Howard said that this was because of the country’s sensible regulations.

“The regulators in the UAE are hard, but they want the industry to fly and so they write sensible regulations and they are prepared to talk to the industry in order to evolve those regulations,” the report said.

Taylor also said that Brevan Howard’s crypto trading operations represented about $2 billion of the firm’s total strategies which he said were over $30 billion. Brevan Howard has become the first global hedge fund to have 100 employees in the UAE.

Earlier this year, the UAE branch of Brevan Howard Digital deployed $20 million in assets on Kinto, a blockchain DeFi financial portal which rewards active participants such as traditional financial entities who deposit assets on-chain with token emissions.