Abu Dhabi Investment Authority will become a shareholder in managed account services platform Innocap Investment Management, in an agreement that will eventually increase its stake to 10% and give it a board seat.
The stake is held by one of the sovereign wealth fund’s wholly owned subsidiaries.
Under the agreement, Innocap will also provide dedicated managed account platform services for parts of ADIA’s hedge fund and equity exposures, a news release said.
The $1.1 trillion wealth fund’s stake will increase over the coming years, and once it reaches 10%, Mohammed Sghayer Khalaf Al Qubaisi, deputy director of ADIA’s alternative investments department, will join the Innocap board.
Other shareholders in the firm include senior management, BNY and BNP Paribas.
“ADIA is one of the world’s leading institutional investors, and we are proud to have been selected to provide dedicated managed account platform services,” Francois Rivard, Innocap CEO, said in the release. “Welcoming ADIA as a shareholder in Innocap also 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.”
Innocap has also identified the Middle East as a key growth market, with plans to open an office in Abu Dhabi this year.