Alpha Dhabi to invest Dh9.2b in new venture capital fund

Alpha Dhabi Holding, in the wake of a sterling first-quarter performance, announced on Thursday its commitment to invest Dh9.2 billion in the landmark ‘Alpha Wave Ventures II’ fund.

The Abu Dhabi Securities Exchange-listed company said its total commitment to investing in the Chimera Capital and Alpha Wave fund launched at the beginning of the year comprises a capital contribution of Dh2.6 billion and an undrawn capital commitment of Dh6.6 billion which will be drawn down over the investment period of the fund.

The holding company, one of the fastest-growing investment holding companies in the UAE, last week announced Dh2.84 billion in first-quarter 2022 net profit, up significantly year-on-year from Dh100 million, amid a ramp-up of investment activity. It also reported strong Q1 2022 performance with a record revenue of Dh8.17 billion, representing a year-on-year increase of 700 per cent.

Hamad Al Ameri, CEO of Alpha Dhabi Holding, said investment in innovation and technology remains a core tenet of the growth strategy at Alpha Dhabi.

“We continually look at investments in disruptive technologies as a means of advancing our group of operating subsidiaries which include market leaders in their respective sectors. As a cornerstone and significant investor in this fund, we are able to firmly demonstrate this commitment to innovation, technology, and growth-stage companies while also adding scale to our investment portfolio and delivering superior returns for our shareholders,” said Al Ameri.

In a statement, the company said the venture capital fund – which has already begun making investments – has a global remit, and will focus on multi-stage private firms, with a concentration on growth-stage companies across a wide range of sectors including artificial intelligence, financial technology, life sciences, consumer internet, and B2B.

“The fund’s investment emphasis is in line with Alpha Dhabi’s growth strategy, which is focused, in part, on investment in disruptive technologies as part of the UAE’s ambition to create a diversified, tech-enabled and competitive economy that fosters a culture of innovation,” the holding company said.

Alpha Dhabi said the fund will target investments in high growth, tech-enabled, and tech-driven businesses that provide pioneering and innovative solutions to key problems both regionally and globally. “As a key and strategic contributor to the UAE’s economy and diversification efforts, the fund, and our commitment strengthen Abu Dhabi’s position as a hub of innovation and technology and amplify the country’s growing position as a premier investment destination for international, institutional and growth capital.”

— issacjohn@khaleejtimes.com