Abu Dhabi’s ADIA acquires stake in Canadian Firm Innocap

Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the UAE, is investing in Innocap Investment Management, a Canadian platform that makes it easier to allocate capital to multiple hedge funds.

The investment by a wholly owned subsidiary of ADIA is for a minority stake, which will be progressively increased to 10 per cent in the coming years. Innocap said that Mohammed Sghayer Khalaf Al Qubaisi, deputy director of the sovereign fund’s alternative investments department, would join its board “at that point”. The financial details of the transaction were not disclosed.

“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. Innocap has developed an industry-leading platform which offers a compelling service to asset owners who are seeking more transparency and capital efficiency,” said Al Qubaisi.

ADIA’s subsidiary joins Innocap shareholders, including senior management, Caisse de dépôt et placement du Québec (CDPQ), BNY, Walter Global Asset Management and BNP Paribas.

“Innocap’s shareholders recognise a clear shift in the industry towards dedicated managed accounts, which is notably driven by institutional allocators’ commitment to their fiduciary duty. The resulting network effect is leading to increased use of platforms, such as Innocap, as a superior way to access, structure and monitor their alternative investments,” the Canadian said in a statement.

Innocap operates a managed accounts platform, enabling investors to allocate capital across diverse funds with complete transparency and control over their investments.

The platform typically offers lower fees compared to traditional investment structures. It has identified the Middle East as a key growth market and plans to open an office in Abu Dhabi in 2025.

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