Abu Dhabi Revamps New $300 Billion Fund to Aid Dealmaking Push

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(Bloomberg) — Abu Dhabi’s newest wealth fund is overhauling its executive ranks and reorganizing parts of its portfolio as the $300 billion investor overseen by an influential royal prepares for a more central role in the emirate’s dealmaking ambitions.

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L’imad Holding has been working with Boston Consulting Group to recruit senior professionals, according to people familiar with the matter. The fund is also reviewing certain existing roles and has asked some executives who transferred from ADQ following an acquisition earlier this year to reapply for their positions, the people said.

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The moves offer a glimpse into how officials within Abu Dhabi are looking to reshape the sovereign wealth fund. Created last year, L’imad soon absorbed ADQ, one of the world’s fastest-growing sovereign investors with assets spanning everything from a stake in Sotheby’s to Abu Dhabi’s flagship airline and other marquee local holdings.

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L’imad inherited not just those assets, but a broader mandate that’s expected to place it at the heart of Abu Dhabi’s push to bolster its defence and infrastructure investments, as well as deals in China and the US.

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For Wall Street banks and private equity firms vying for Abu Dhabi’s cash, the reshuffle now underway offers a window into the thinking of L’imad Chairman, Crown Prince Sheikh Khaled bin Mohamed, and Chief Executive Officer Jassem Bu Ataba Al Zaabi.

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The reorganization at L’imad, one of the world’s largest pools of capital, spans investment and operational roles, people familiar with the matter said. While many employees have transitioned into the combined entity, management is seeking to streamline reporting lines and eliminate overlap, the people said. 

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The changes are likely to impact headcount, according to one of the people, leading to a degree of uncertainty within the fund. External partners with longstanding ties to ADQ, too, are grappling with the prospect of having to rebuild ties with new power brokers within L’imad, some of the people said.

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BCG is helping the fund recruit senior executives, beginning with a rigorous initial screening, according to the people, who declined to be identified as the information is confidential. Select candidates then face multiple rounds of interviews before meeting with Chief Financial Officer Samer Khalife or Chief Investment Officer Hashem Al Dabbas, they said.

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The consulting behemoth has deep ties to the region and the mandate will help bolster its business at a time when it’s facing a slowdown in some markets. BCG was instrumental in helping develop plans to overhaul the Saudi economy and has worked extensively with the kingdom’s $1 trillion Public Investment Fund.

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As part of the changes, the Abu Dhabi fund is also looking to hire a CEO for L’imad Capital, which is expected to oversee investment activities across global markets, according to the people. In particular, it aims to strengthen its presence in the US and has hired executives from leading Wall Street institutions in recent months, one of the people said.