On Thursday, Abu Dhabi-based Artificial Intelligence firm G42, backed by a vital emirate’s ruling family member, managed a $10 billion fund focusing on technology investments in emerging economies.
G42, occupied by Abu Dhabi’s Sheikh Tahnoon bin Zayed, has been a prominent figure in several high-profile government infrastructures to develop the technology industry.
Moreover, it assisted the UAE in fighting against the outbreak of the Covid-19 pandemic by collaborating with Chinese companies to boost testing capacity and vaccine development.
In addition, Mubadala, an Emirati state-owned holding company, owns a minority stake in G42. Furthermore, the $280 billion fund has itself interceded to invest in technology-focused businesses just as other investors got back as they think it might be risky and potentially overpriced assets.
G42 and Abu DhabiQGrowth Fund(ADQ) are part of a business domain administrated by the United Arab Emirates National Security Adviser Sheikh Tahnoon Bin Zayed.
Additionally, the G42 Expansion Fund targets late-stage growth companies with rugged technologies. It will manage as a private equity investor, with a worthy share of funds assigned for high-growth areas in sectors ranging from communications, healthcare, and intelligent mobility.
The move comes as Abu Dhabi — a city that’s among the few globally to manage over $1 trillion in sovereign wealth capital — ratchets up efforts to plow oil revenue into the technology sector and diversify its economy.
Mubadala Investment Co., an Abu Dhabi wealth fund with a minority stake in G42, has invested in the sector amid a recent rout.
For its part, G42 has been assembling its investment team with key hires from Abu Dhabi sovereign funds over the past year. In addition, U.S. private equity firm Silver Lake invested in the firm last year, and its co-Chief Executive Officer Egon Durban sits on its board.
The new fund “is an important landmark in the growth of the UAE’s technology ecosystem,” Durban said in a statement.
Abu Dhabi Growth Fund, a partner in the G42 venture, invests primarily in private equity and venture capital. Led by Khalifa Al Suwaidi — who was a chief investment officer at ADQ — the fund has a “unique risk profile that complements the existing Abu Dhabi sovereign wealth funds,” according to its website.
Sheikh Tahnoon, the brother of the Emirates president, has been at the vanguard of many of Abu Dhabi’s recent technology investments.
However, his interests range from Royal Group to ADQ, and both commodities newly committed money to a new fund set up by SoftBank Group’s Rajeev Misra.
The CEO of G42, Peng Xiao, says, “With the G42 Expansion Fund, we aim to accelerate our international impact not only through the deployment of capital but also by providing unique access to our networks, surveillance, and operational assets to our portfolio companies.”
Peng Xiao will be chairman of the new fund’s investment committee, including Abu Dhabi Growth Fund’s Al Suwaidi.
Meanwhile, U.S. private equity firm Silver Lake is also an investor in G42.