Technology growth

G42 launches $10 billion tech growth fund – News

The Abu Dhabi-based company said the G42 Expansion Fund will operate as a private equity investor targeting a wide range of technologies that promise to shape the global economic landscape over the coming decades.



The fund is established in strategic partnership with Abu Dhabi Growth Fund. — File photo

Published: Thu 18 August 2022, 17:24

Last update: Thu 18 August 2022, 17:43

G42, a Mubadala-backed artificial intelligence company, launched a $10 billion fund on Thursday to invest in early-stage technology companies.

The Abu Dhabi-based company said the G42 Expansion Fund will operate as a private equity investor targeting a wide range of technologies that promise to shape the global economic landscape over the coming decades.

The fund, which is established in strategic partnership with Abu Dhabi Growth Fund (ADG), identifies IT, clean technology and renewable energy, digital infrastructure, life sciences, healthcare, new materials and fintech, among others, as potential investment sectors.

The fund, which will be managed by a subsidiary of G42, focuses on accelerating the pace of global innovation by investing in late-stage companies with disruptive technologies and strong business fundamentals.

Peng Xiao, CEO of G42 Group and Chairman of the Investment Committee of the G42 Expansion Fund, said the G42’s journey to date has been marked by successes across a wide range of industries, overcoming the most more complex issues faced by our customers.

“With the foundation built by our operational businesses and the support of our strategic partner ADG, the next era of G42 will be marked by our ability to energize new businesses around the world,” Xiao said in a statement.

In a recent report, Boston Consulting Group said the UAE, where approximately 96% of the tech workforce is made up of immigrants, exemplifies the benefits of a comprehensive and well-planned strategy to develop a tech hub. which deploys short-term and long-term levers.

“The UAE has successfully attracted top tech companies by reducing its corporate tax rate to zero. Smaller tech companies have followed with operations in the UAE. The emirate has also launched an initiative to attract talent with the skills needed for government-targeted industries, such as agricultural technology,” the BCG report said.

Dubai has also introduced various measures to attract investment in the technology sector and promote the digital economy. Dubai Future District, a new space dedicated to developing the future economy, as well as a MAD 1 billion fund formed to support new economy businesses that can fuel Dubai’s future growth.

Investment in a high growth region

The fund will operate as a private equity investor, with a significant portion of investments going to high-growth regions. In addition to providing investment support, the G42 will leverage its operating assets and ecosystem of operating companies to accelerate value creation across the G42 Expansion Fund’s investment portfolio. .

“With the G42 Expansion Fund, we aim to accelerate our global impact not only by deploying capital, but also by providing unique access to our networks, management and operational assets to our portfolio companies,” said Xiao.

“We look forward to engaging with pioneering entrepreneurs who share our core values ​​and ambitions for growth, and we are excited to partner with ADG to further solidify Abu Dhabi as a global hub of innovation and progress.” , did he declare.

High-impact technological solutions

G42 develops high-impact technology solutions to solve the world’s most complex problems through a robust business portfolio including Bayanat, G42 Healthcare, G42 Smart Nation, G42 Cloud, Injazat, Khazna, Presight, and more. It also partners with a growing global network of leading international organizations in its mission to democratize access to advanced technologies for all markets around the world.

Khalifa Al Suwaidi, Managing Director of ADG and member of the investment committee of the G42 Expansion Fund, welcomed the initiative and said it was a perfect fit with the firm’s investment strategy .

“By supporting both innovation and strong management teams within well-organized companies, the G42 Growth Fund fits perfectly into our investment strategy. We look forward to partnering with G42 as we continue to develop our strategy of partnering with high quality fund managers who can deliver first quartile financial returns over the long term,” said Al Suwaidi.

Milestone for the tech ecosystem

Egon Durban, Co-CEO and Managing Partner of Silver Lake and G42 Board Member, said the launch of the G42 Expansion Fund is an important step in growing the UAE’s technology ecosystem as a as a pioneering driver of innovation and entrepreneurship on a global scale.

“This underscores G42’s position as a highly respected technology company committed to developing and delivering artificial intelligence and digital transformation solutions that have a positive impact in helping businesses and governments responsibly meet their most pressing challenges and to seize their most exciting opportunities,” says Durban.

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