Chimera Investments-owned alternative investment manager Lunate and US bank BNY Mellon are investing in Alpheya, a wealth technology company based in Abu Dhabi, to capture the Gulf region’s $5 trillion wealth market.
With capital commitments worth $300 million, Alpheya will start operations in 2024 and is in the process of hiring at least 100 staff locally and globally. It will provide a customized wealth management technology platform for wealth and asset managers in the Middle East and North Africa (MENA) region.
BNY Mellon will hold a minority share in the new company and will provide it with expertise in wealth technology.
The new company aims to create wealth technology solutions that provide digital tools and software solutions on a single integrated platform that is customized for the Middle East, according to the company statement.
“Wealth franchises today are managing complex technology environments and a multitude of investment options that are all supported by more data and analytics and increasingly sophisticated risk management practices,” said Roger Rouhana, chief executive of Alpheya, and former head of strategy at BNY Mellon in New York.
“It (Alpheya) will greatly enhance the ability of regional wealth managers to grow in a scalable and client-centric way,” he said.
Lunate, with over $50 billion assets under management, was set up in September by Abu Dhabi-based Chimera Investments to target global opportunities across private equity, venture capital, private credit, real assets, public equities, and public credit markets. It aims to deploy capital through a combination of strategies such as limited partnership, co-investments, and direct investment opportunities. It is also expected to expand globally and open offices in North America, Europe and Asia.
“Not only will this new platform transform wealth capabilities for financial institutions across MENA. It will also strengthen Abu Dhabi’s role as a global hub for wealth and asset management,” said Lunate managing partner Seif Fikry.
BNY Mellon works with a range of sovereign wealth funds, financial institutions, governments and other clients throughout the region. It had $45.7 trillion in assets under custody and/or administration and $1.8 trillion in assets under management as of Sept. 30, 2023. BNY Mellon Wealth Management is among the US’ top 10 wealth managers.
