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Abu Dhabi-based G42 launches $10bn tech investment fund

The G42 Expansion Fund’s investment priorities will span across computing and communications technologies, intelligent mobility, clean tech and renewables, digital infrastructures, fintech, healthcare and life sciences

UAE-based AI and cloud computing technology company, G42 has launched the $10bn G42 Expansion Fund, a global technology growth fund formed in a strategic partnership with Abu Dhabi Growth Fund (ADG).

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

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

The G42 Expansion Fund’s investment priorities will span across technologies that promise to shape the global economic landscape in the next decades, such as computing and communications technologies, intelligent mobility, clean tech and renewables, digital infrastructures, new materials, multiverses, fintech, healthcare, and life sciences.

Peng Xiao, group CEO at G42 and chairman of the G42 Expansion Fund’s Investment Committee, said: “The G42 journey to date has been marked by success stories in a wide range of industries, addressing the most complex challenges faced by our customers. With the foundation built by our operating businesses and support from our strategic partner ADG, the next era of G42 will be marked by our ability to turbocharge new ventures around the world. With the G42 Expansion Fund, we aim to accelerate our global impact not only through the deployment of capital, but also by providing unique access to our networks, management, and operational assets to our portfolio companies. We are eager to engage with trailblazing entrepreneurs who share our core values and growth ambitions, and we are excited to be partnering with ADG to further cement Abu Dhabi as a global hub for innovation and progress.”

Khalifa Al Suwaidi, ADG CEO and Member of the G42 Expansion Fund’s Investment Committee, said: “As a growth focused investor, we are very pleased to have a technology investment partner in G42 that possesses deep knowledge of emerging technologies combined with the operational requirements for global growth and value creation. By supporting both innovation and strong management teams within well-organised businesses, the G42 Expansion Fund is an excellent fit with our investment strategy. We look forward to partnering with G42 as we continue to build on our strategy of partnering with high-quality fund managers that can deliver top-quartile financial returns over the long-term.”

Egon Durban, Co-CEO and managing partner of Silver Lake and Board Member of G42, said: “The launch of the G42 Expansion Fund is an important milestone in the growth of the UAE’s technology ecosystem as a pioneering driver of innovation and entrepreneurship globally. Further, it underscores G42’s position as a highly respected technology company, committed to leadership in developing and delivering AI and digital transformation solutions that have a positive impact in helping businesses and governments responsibly and sustainably address their most pressing challenges and embrace their most compelling opportunities.”

Recent partnerships and investments in key industries include G42 Healthcare’s partnership with Oxford Nanopore Technologies, a UK-based DNA-sequencing specialist; G42’s investment in Beyond Limits, a US-based industrial and enterprise-grade artificial intelligence company; G42’s partnership with Cerebras Systems, a US-based team of pioneering computer architects, deep learning researchers, and engineers who are building a new class of computer system specifically designed for AI; and FLYR Labs, a US-based company focused on delivering AI-powered revenue management applications for transportation leaders.