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Abu Dhabi Investment Authority (ADIA) has bought a minority stake in Innocap Investment Management, and will use the managed account platform provider for its growing hedge fund and equity exposures.
In a move which crystallises the current industry interest in SMAs, ADIA’s stake in Innocap will rise to 10% in the years ahead. Mohammed Sghayer Khalaf Al Qubaisi, deputy director of the Alternative Investments Department at ADIA, will then join the Innocap board.
Innocap said its shareholders see a clear shift in the industry towards dedicated managed accounts, “notably driven by institutional allocators’ commitment to their fiduciary duty. The resulting network effect is leading to an increased use of platforms as a superior way to access, structure and monitor their alternative investments.”
Bringing in ADIA as a shareholder “enhances the robustness and diversification of our shareholder base and will increase the momentum of our industry transformation story and drive the growth of our purpose-built technology platform,” said François Rivard, CEO of Innocap.
“Innocap’s platform provides ADIA with a more cash efficient structure while allowing for greater investment flexibility for some of its hedge fund and equity exposures,” said Khalaf Al Qubaisi.
“Innocap has developed an industry-leading platform which offers a compelling service to asset owners who are seeking more transparency and capital efficiency.”
Innocap has identified the Middle East as a key growth market and plans to open an office in Abu Dhabi in 2025. It has more than $80bn on the platform.
Bloomberg first reported the news.