Abu Dhabi, UBS plan second infrastructure fund of up to $1bn

Mark Thompson, CEO of the joint venture between the Middle Eastern investment company and the Swiss asset management giant, said they will seek to raise a second infrastructure fund in the near future. Their first joint venture infrastructure fund is expected to close early next year.

Building upon their joint venture launched earlier this year, the Abu Dhabi Investment Company and UBS Global Asset Management are planning to launch a second infrastructure fund of up to $1 billion, a company spokesperson confirmed.

In February, the two firms joined forces on a 50-50 joint venture to create a $600 million infrastructure fund to invest in equity in the Middle East and North Africa region. The fund, which is expected to close next year, focuses on utilities, transport, social and energy related infrastructure projects.

Mark Thompson, the chief executive officer of the joint venture, said at a recent conference sponsored by London’s Middle Eastern Economic Digest magazine that the two firms plan to launch new funds over a three year period. Among the new funds will be a second infrastructure fund of $750 million to $1 billion, he said. His remarks were first reported by Reuters.

ADIC-UBS Infrastructure Fund I is planning on investing more than $200 million in a road project in Abu Dhabi linking the emirate to Saudi Arabia and a Saudi Arabian power project, according to remarks Thompson made at the conference.

Established in 1977, the Abu Dhabi Investment Company is jointly owned by the Abu Dhabi Investment Authority and the National Bank of Abu Dhabi. It offers services such as private equity, venture capital, real estate investments, portfolio management, trade financing, commodities and securities trading.