Dubai-based Magellan Capital Holdings Ltd is set to launch a $700m multi-strategy hedge fund next month, in what will be one off the largest ever fund debuts in the United Arab Emirates, according to a report by Bloomberg.
The report quotes Britney Lam, the firm’s head of long-short equities, as saying that the fund will focus on equity and credit strategies.
The seed capital for Magellan’s new fund comes from the family wealth of Hassan El Ali, the founder of Zakher Marine International, which he sold to a subsidiary of Abu Dhabi National Oil Co two years ago. According to data from industry tracker Preqin, only 5% of hedge funds globally have launched with $500m or more this year.
“We plan to approach key allocators, including family offices and sovereign funds in the region, once we have established a solid track record — likely in about 12 months,” said Lam. “I want to ensure our investment process is fully in place before attracting substantial external capital.”
The launch is a further example of Dubai’s growing standing as a hedge fund hub with the city now home to local offices of 37 global hedge funds managing at least $1bn each, with 25 of these firms having established their presence since 2022, according to data from With Intelligence.
Magellan, which operates offices in Dubai, Abu Dhabi, and London, has doubled its staff over the past year, and now employs more than 20 professionals across its public and private markets operations.
