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Dubai-based investor Magellan Capital is planning to launch a USD 700 mn multi-strategy fund, set to be one of the largest hedge fund debuts in the UAE, Bloomberg reports. Only 5% of hedge funds globally have exceeded USD 500 mn this year, according to industry tracker Preqin.
The details: The new fund will focus on equity and credit strategies, offering both long-short and long-only stock approaches, Bloomberg cites Magellan head of long-short equities Britney Lam as saying. The long-short investment strategy involves taking long positions in chosen companies, shorting their competitors, or capitalizing on arbitrage opportunities between producers and suppliers.
Where did the money come from? The fund’s seed capital comes from Magellan’s owner Hassan El Ali’s family fortune. The family founded and sold Zakher Marine International to Adnoc Logistics & Services two years ago for USD 1.1 bn.
Additional investors, including family offices and sovereign funds, will be targeted once Magellan builds a strong performance record in about a year, according to Lam. “I want to be prudent and make sure the investment process is in place before bringing in too much external capital,” Lam noted.
More on Magellan Capital: Established in 2024, Magellan now has offices in Dubai, Abu Dhabi, and London, with its staff doubling to over 20.
ICYMI- Magellan Capital acquired 90% of ship financing firm Danish Ship Finance (DSF) in a EUR 700 mn transaction in June, aiming to diversify its investment portfolio. The Dubai-based investor expects three more acquisitions worth some USD 200 mn for the remainder of the year, targeting firms in real estate, luxury, and healthcare.
