Brevan Howard, the prominent macro hedge fund managing roughly $34 billion in assets, has announced a landmark strategic partnership with Abu Dhabi-based investment manager Lunate. Under the agreement, Lunate will commit an initial $2 billion to launch a suite of new funds domiciled in the Abu Dhabi Global Market (ADGM), featuring macro and digital asset strategies.
Strategic Details & Regional Ambitions
As part of the deal, Lunate will acquire a minority stake in Brevan Howard, marking its entry into the hedge fund space and giving the firm greater exposure to alternative strategies. The new investment platform, subject to regulatory approval, will leverage Brevan Howard’s existing expertise in macro trading while expanding into cryptocurrency and digital asset strategies.
Brevan Howard has maintained a regional presence in Abu Dhabi since establishing its ADGM office in 2023, now its largest by assets managed globally. The partnership is part of a broader push by the firm to ensure long-term sustainability and diversification in leadership and capital structure.
Capital and Performance Context
While Brevan Howard’s flagship Master Fund has experienced some underperformance in recent quarters, its Alpha Strategies fund has shown modest gains, bolstering investor confidence in deploying fresh capital. According to insiders, the firm intends to raise additional capital over time from both regional and global sources.
Notably, Brevan Howard already conducts a significant portion of its crypto trading from the UAE, citing the region’s balanced regulatory environment as a key enabling factor. This move strengthens that operational link while reinforcing its commitment to digital assets expansion.
Implications and Outlook
This transaction signals increasing alignment between Gulf sovereign and alternative investment capital and global hedge fund firms. For Abu Dhabi, the deal helps solidify its ambition to become a leading hub for asset management and alternative finance.
For Brevan Howard, the partnership reduces dependency on its founding trader model, brings fresh capital, and deepens its presence in a region already central to its operations. As global demand for macro and crypto strategies evolves, this strategic repositioning could give the firm a structural advantage in attracting capital from Middle Eastern institutions.
