Abu Dhabi’s Lunate to commit $1 billion to new investment platform launched with BlackRock’s HPS

ABU DHABI: BlackRock-owned HPS Investment Partners and Abu Dhabi’s Lunate plan to launch a new platform to invest in large North American and European corporates, to which Lunate will commit at least $1 billion, the companies said on Thursday.

The focus of the HPS Strategic Solutions Partners Platform will be on privately negotiated preferred and common stock investments, and related debt instruments in large companies, mainly in the United States and Europe, their statement said.

As they look to capitalise on the growing demand for private capital, HPS and Lunate will also work together to allow investors based in the Middle East to access the new platform.

“Market dynamics continue to create attractive opportunities for customised, scaled capital solutions, as both sponsor and non-sponsor owned large companies seek flexible sources of financing,” said Scot French, founding partner and co-president of HPS.

HPS which had $165 billion in assets under management at the end of June.

Abu Dhabi, the capital of the United Arab Emirates, is home to three wealth funds that collectively manage about $1.5 trillion in assets.

It is creating a new national champion in the alternative investments sector with Lunate, which manages $110 billion in assets and has a core focus on private markets.

Lunate and Blackstone unveiled a plan this month to set up a platform targeting investments in logistics assets in the Gulf region worth $5 billion.