Gulf’s Dealmaker Gains Control Of $1.5 Trillion Fund

Sheikh Tahnoon bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, has become one of the world’s most influential dealmakers. 

He has gained control of the largest sovereign wealth fund in the United Arab Emirates, expanding the assets he oversees to almost $1.5 trillion. 

Sheikh Tahnoon has been involved in billions of dollars worth of deals, investing in various sectors such as technology and finance.

He now heads two wealth funds, the region’s most important private investment firm, the country’s largest lender, and its biggest listed corporation. 

This has made him the de facto business chief of the wealthy Al Nahyan family, with access to vast reserves of cash in the oil-rich Persian Gulf.

Sheikh Tahnoon’s entities have faced challenges in completing cross-border deals due to difficulties navigating complex M&A regulations overseas. 

Additionally, there are concerns that Abu Dhabi’s investment vehicles could face national security reviews, particularly in the United States, as stricter checks are conducted on deals involving international investors with ties to the Chinese government.

Despite these challenges, Sheikh Tahnoon’s investment vehicles have shown a particular interest in emerging markets. 

His tech fund is building teams in Asian cities to scout for investment opportunities, and his private investment firm has focused on India as a potential growth engine. 

G42, one of his main entities, is also exploring opportunities to expand its human genome project to countries across Africa and Asia.

Sheikh Tahnoon was given control of the Abu Dhabi Investment Authority, one of the world’s largest wealth funds, in March. He has also been involved in other major deals through his secretive Royal Group.

However, Abu Dhabi’s financial power has not always been enough to overcome obstacles. The First Abu Dhabi Bank, overseen by Sheikh Tahnoon, faced regulatory delays and withdrew a bid for an Egyptian investment bank. Similarly, a potential deal with Standard Chartered faced challenges due to differences in scale and regulatory approvals.

Sheikh Tahnoon is playing a key role in attracting billionaires to the city. He has partnered with Bridgewater Associates founder Dalio to set up a branch of his family office in Abu Dhabi and work on deals together. 

Sheikh Tahnoon has also been involved in expanding the country’s financial influence by investing in markets around the world. 

The UAE has signed agreements to invest in Asian and African economies, including discussions about partnering to build a new capital city in Indonesia. Sheikh Tahnoon’s security background and diplomatic role contribute to the strategic nature of these investments.

Sheikh Tahnoon has built a massive empire through his company IHC. IHC started as a small fish farming firm but has now grown to be worth $240 billion, making it twice the size of Goldman Sachs and Blackstone. 

Despite its success, IHC has not attracted many international investors and is not covered by analysts. The company focuses on transparency and strategic collaborations to unlock new opportunities and maximize its assets. 

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The surging stock price of IHC has also helped boost the local stock market. Sheikh Tahnoon’s financial vehicles aim to generate wealth for future generations and maintain dominance in the market.