Brevan Howard, one of the world’s most influential hedge fund managers, has cemented its growing ties with the Middle East after striking a $2 billion deal with Lunate, the Abu Dhabi-based alternative investment powerhouse. The agreement underscores how global hedge funds are increasingly aligning with the Gulf’s sovereign-backed investors to secure long-term capital and expand their presence in fast-growing markets.
A Strategic Shift to the Gulf
For Brevan Howard, the move represents the payoff of a calculated bet made several years ago to expand into Abu Dhabi. The hedge fund, known for its prowess in macro trading, began steadily building operations in the emirate as Western financial hubs faced tighter regulations and heightened competition for institutional capital.
“Brevan saw what others were just beginning to notice,” said one regional fund manager. “Abu Dhabi was emerging as not just a capital allocator but a financial center in its own right.”
That foresight appears to be paying dividends. The partnership with Lunate, an investment manager with backing from Abu Dhabi’s sovereign wealth ecosystem, will channel billions into Brevan Howard’s strategies, strengthening its ability to scale across macro, credit, and digital asset platforms.
Why Abu Dhabi?
Abu Dhabi has been aggressively positioning itself as a global finance hub, leveraging its sovereign wealth firepower and investor-friendly regulatory framework. Through initiatives like the Abu Dhabi Global Market (ADGM), the city has lured some of the world’s largest funds, offering a blend of stability, favorable taxation, and proximity to Asia’s growing capital flows.
For Brevan Howard, the emirate provides something New York or London no longer can: patient capital that aligns with long-term, high-conviction investment strategies.
Inside the Lunate Partnership
Lunate, launched with backing from Chimera Investment and ties to Abu Dhabi’s ruling family, has quickly established itself as a heavyweight in private and public markets. Its $2 billion allocation to Brevan Howard represents one of the most significant commitments to a hedge fund by a Middle Eastern investor in recent years.
The deal will focus on:
- Global macro strategies, Brevan Howard’s core expertise, which profit from shifts in interest rates, currencies, and geopolitics.
- Alternative credit and private opportunities, aligning with Abu Dhabi’s appetite for yield in a higher-rate environment.
- Digital assets and fintech, where Brevan has quietly built an early-mover advantage.
“This partnership is more than just capital,” said a person close to the negotiations. “It’s about co-developing strategies that leverage Brevan’s trading edge and Abu Dhabi’s global reach.”
A Model for Future Deals
The agreement also signals a new model for the hedge fund industry, where strategic partnerships with sovereign-backed firms could replace traditional fundraising through pensions and endowments. In an era of higher volatility and geopolitical risk, Gulf investors are emerging as the anchors of global finance.
Already, Abu Dhabi has pulled in names like Blackstone, Apollo, and Millennium, each setting up larger footprints in the city. Brevan Howard’s deal with Lunate reinforces that the UAE capital is no longer simply a source of capital—it is fast becoming a command center for capital markets innovation.
The Road Ahead
For Brevan Howard, the Lunate partnership is a significant boost in scale and influence, providing not just funding but also prestige in one of the world’s most competitive hedge fund arenas.
For Abu Dhabi, it is another step toward realizing its vision of becoming the Middle East’s financial epicenter—bridging East and West, attracting elite managers, and exporting capital globally.
As global markets brace for uncertainty in 2025, this deal underscores a clear trend: the gravitational pull of Gulf capital is reshaping the hedge fund industry.
