Abu Dhabi’s L’imad Capital prepares to seek outside capital for PE strategy

Abu Dhabi sovereign investment platform L’imad Capital is preparing to raise capital from external investors for a new investment vehicle focused on private equity and other alternative assets, according to a report by Bloomberg citing unnamed people familiar with the plans.

L’imad Capital, a unit of Abu Dhabi’s approximately $300bn L’imad wealth fund, is being developed as a global investment platform that could invest in private equity funds and pursue direct transactions and co-investments.

The investment unit is expected to establish a track record through direct investments, co-investments and strategic partnerships before approaching third-party investors. A fundraise could take place as early as next year, although the plans remain under consideration and no final decision has been made.

L’imad Capital is also recruiting a chief executive, with candidates understood to have backgrounds spanning private equity, infrastructure and private credit. Several other senior appointments are expected in the coming months.

L’imad Capital is being developed as part of a broader restructuring of its parent, L’imad, which is chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan.

Under the proposed structure, L’imad would function more like a holding company with stakes in major Abu Dhabi businesses, while L’imad Capital would operate with a buyout-style mandate, pursuing investments either to support portfolio companies or to generate returns for the wider group.

The parent fund has been expanding its investment activity across sectors including infrastructure, logistics and transport. Last month, L’imad announced plans to take Abu Dhabi Ports private in a transaction valuing the company at about $8.7bn, giving the government greater control over the ports and logistics group.

L’imad has also been reported to be considering an investment in an aviation business operated by Apollo Global Management, as Abu Dhabi seeks to expand its transport and logistics capabilities.

The fund has meanwhile partnered with BlackRock’s Global Infrastructure Partners, Singapore’s Temasek and Abu Dhabi National Oil Company on a venture targeting up to $30bn of infrastructure investments.