Brevan Howard Asset Management has agreed to sell a minority stake to Abu Dhabi-based Lunate, alongside a $2bn capital commitment to a new investment platform in the emirate’s ADGM free-zone, according to a report by Bloomberg.
The deal underscores both the macro-trading giant’s deepening presence in the Gulf and Abu Dhabi’s growing role as a global hedge fund hub.
The transaction is a rare example of a hedge fund selling equity to an external partner, and represents a milestone for Brevan Howard, which established its Abu Dhabi office in 2023. The emirate has since become the firm’s largest trading centre, housing co-founder Trifon Natsis and managing roughly $10bn – almost a third of Brevan’s $34bn in total AUM.
Lunate, launched last year and already managing over $110bn, is a subsidiary of Chimera Investment and counts ADQ as an anchor client. Backed by Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan’s business empire, the firm has been rapidly building its portfolio across private and public markets. With the Brevan deal, Lunate is making its first direct push into hedge funds, with the new platform expected to focus on macro, credit and growth strategies.
For Abu Dhabi, the tie-up is another sign its strategy of attracting hedge funds is gaining momentum. Sovereign wealth funds including ADIA and Mubadala – collectively managing close to $1tn – have long been viewed as a magnet for international asset managers. Hedge funds such as Marshall Wace, Rokos Capital Management and Hudson Bay Capital are all establishing offices in the emirate, seeking proximity to institutional capital and favourable tax conditions.
