Alternative asset manager Dubai International Capital has acquired a 9.9 percent stake in US hedge fund Och-Ziff Capital Management for up to $1.18 billion (€819 million) as the hedge fund manager approaches an IPO.
Dubai International Capital has committed to buy up to 36 million shares at between $30 per share and $33 per share, according to an SEC filing.
DIC said in a statement that the investment will create a strategic relationship between the two firms that will involve“sharing resources and global office footprint, undertaking joint initiatives and pursuing co-investment opportunities.”
The sale will be finalised at the same time as Och-Ziff’s planned initial public offering, according to a statement.
DIC becomes one of numerous state-backed firms to take a stake in an alternative asset manager.
US private equity firm The Blackstone Group sold a 10 percent stake in its management company for $3 billion (€2 billion) to funds controlled by the Chinese government, ahead of its initial public offering in July this year.
Blackstone has been followed by two of its US rivals in securing backing from a sovereign wealth fund. The Carlyle Group sold a 7.5 percent stake to an affiliate of Mubadala, the Abu Dhabi Government strategic investment and development company, for $1.35 billion last month. The Abu Dhabi government also backed Apollo Management with a $1.5 billion investment for a 10 percent stake in July.
DIC is backed by Dubai Holding, which is wholly owned by the ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum.