The Abu Dhabi Investment Authority (ADIA) is increasing its focus on private equity, hedge funds and other alternative investments as it reshapes the strategy of one of the world’s largest sovereign wealth funds.
ADIA’s assets are estimated at $1.1T to $1.2T by specialist sovereign wealth fund trackers, although the institution does not publicly disclose its total assets under management. It invests on behalf of the Abu Dhabi government across global markets and asset classes.
Private equity is a central part of the strategy, with a target allocation of 12% to 17% of the long-term portfolio. ADIA invests directly, through private equity managers and via minority stakes in companies across sectors including financial services, healthcare, industrials, technology and consumer goods.
The authority targets 5% to 10% for financial alternatives, including hedge funds using macro, quantitative, long-short, relative-value and event-driven strategies. It is also expanding into private credit, alongside infrastructure and other private-market assets.
According to its published strategy, ADIA manages capital across more than 20 asset classes. Its investment teams are also placing greater emphasis on artificial intelligence, machine learning, big data and high-performance computing to improve market analysis and identify time-sensitive opportunities.
Founded in 1976, ADIA began investing in hedge funds in 1986 and private equity in 1989. The shift comes as Abu Dhabi strengthens its position as a global centre for asset management and institutional capital.
Source: Jawlah
