Following a strong first quarter, Alpha Dhabi Holding announced on Thursday that it will invest Dh9.2 billion in the landmark ‘Alpha Wave Ventures II’ fund.
The company, which is listed on the Abu Dhabi Securities Exchange, said its total commitment to investing in the Chimera Capital and Alpha Wave fund, which was launched at the start of the year, includes a capital contribution of Dh2.6 billion and an undrawn capital commitment of Dh6.6 billion, which will be drawn down over the fund’s investment period.
The holding company, which is one of the UAE’s fastest-growing investment holding companies, announced a net profit of Dh2.84 billion in the first quarter of 2022, up significantly from Dh100 million the previous year, owing to increased investment activity. It also reported a strong first quarter of 2022 performance, with a record revenue of Dh8.17 billion, up 700% year on year.
Alpha Dhabi Holding CEO Hamad Al Ameri said that investing in innovation and technology is still a key part of the company’s growth strategy.
“We are constantly looking for ways to advance our group of operating subsidiaries, which include market leaders in their respective sectors, by investing in disruptive technologies. We are able to firmly demonstrate this commitment to innovation, technology, and growth-stage companies as a cornerstone and significant investor in this fund, while also adding scale to our investment portfolio and delivering superior returns for our shareholders,” said Al Ameri.
The venture capital fund, which has already started making investments, will focus on multi-stage private firms, with a focus on growth-stage companies across a wide range of sectors, including artificial intelligence, financial technology, life sciences, consumer internet, and B2B, according to the company.
“The fund’s investment focus is consistent with Alpha Dhabi’s growth strategy, which includes investments in disruptive technologies as part of the UAE’s ambition to build a diversified, tech-enabled, and competitive economy that fosters a culture of innovation,” the holding company said.
The fund will invest in high-growth, tech-enabled, and tech-driven businesses that provide pioneering and innovative solutions to key regional and global problems, according to Alpha Dhabi. “As a key and strategic contributor to the UAE’s economy and diversification efforts, the fund, and our commitment amplify Abu Dhabi’s growing position as a premier investment destination for international, institutional, and growth capital.”
