Over close to two decades, the Abu Dhabi Investment Council has quietly built a $160 billion portfolio, largely unnoticed in a city awash in sovereign wealth. That restraint is now starting to fade.
Since Saeed Al Mazrouei took over as chief executive officer in late 2023, ADIC has expanded into new asset classes, refreshed its senior ranks, and grown more vocal in defending its capital. Targeting returns of at least 10%, the independently-run unit of Mubadala Investment Co. has launched a secondaries business, increased its exposure to Bitcoin and accelerated a push into insurance.
The goal is to lift returns without abandoning the endowment-style approach that’s defined the fund since inception and sets it apart from the emirate’s other investing giants, Al Mazrouei, 45, said in a rare interview with Bloomberg News.
That model, popular among universities, philanthropies and pension funds since the 1980s, relies on locking up capital in private markets for higher long-term returns. But while high-profile US endowments have been pressured by weaker performance, liquidity needs and even political scrutiny, ADIC’s position is stronger.
It’s far larger than most endowments, has no payout requirements and is backed by Abu Dhabi’s sovereign might rather than tuition fees or fundraising.
“We don’t get affected by volatility in the market,” Al Mazrouei said. “We have that strong liquidity, that we don’t need to sell private assets or public assets when they are underwater. So that’s an edge for us as an investor.”
ADIC was set up in 2007 as a spin-off from the Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, and later folded under Mubadala as part of a broader restructuring. It has now grown to about half the size of its parent.
Over that period, it has built deep relationships with buyout firms, infrastructure funds and venture investors. Those ties are becoming more valuable as Abu Dhabi’s funds take a more direct role in private markets.
Those assets now account for about two-thirds of the fund’s portfolio, of which private equity is a core pillar. Al Mazrouei views that asset class as an engine of long-term growth, despite the industry’s recent struggles.
“Over long periods, private assets have delivered 300 to 500 basis points above public markets,” he said. “That is the edge we play.” Still, like other investors, he acknowledges that the industry faces a “reset.”
ADIC’s response has been to shrink its roster of general partners to fewer than 40 across private equity and venture capital globally. It’s aiming for deeper conviction bets, better co-investment access and lower fees. Typical commitments range from $100 million to $150 million, with occasional forays into middle-market deals.
Secondaries Push
One of the fastest-growing parts of the broader business is secondaries, where investors can offload stakes in funds they no longer want or hold on to assets beyond the traditional sell-by date. Once considered niche, secondaries have expanded rapidly in recent years.
ADIC launched its secondaries platform about three years ago. The team now has 12 professionals and plans to deploy as much as $10 billion over the next three years.
“Secondaries offer faster deployment, fewer managers, strong data-driven pricing and predictable cash flows,” Al Mazrouei said. “With 17 years of internal data, we can price transactions in days. This will be a major solution for pension funds and endowments that need liquidity.”
“I want to dominate this space,” he added, likening the opportunity to the period that followed the 2009 financial crisis.
At the time, ADIC ramped up its venture capital exposure by buying stakes from cash-constrained US endowments. This secured access to top-tier firms and transformed the fund into a major venture investor.
One of the fastest-growing parts of the broader business is secondaries, where investors can offload stakes in funds they no longer want or hold on to assets beyond the traditional sell-by date. Once considered niche, secondaries have expanded rapidly in recent years.
ADIC launched its secondaries platform about three years ago. The team now has 12 professionals and plans to deploy as much as $10 billion over the next three years.
“Secondaries offer faster deployment, fewer managers, strong data-driven pricing and predictable cash flows,” Al Mazrouei said. “With 17 years of internal data, we can price transactions in days. This will be a major solution for pension funds and endowments that need liquidity.”
“I want to dominate this space,” he added, likening the opportunity to the period that followed the 2009 financial crisis.
At the time, ADIC ramped up its venture capital exposure by buying stakes from cash-constrained US endowments. This secured access to top-tier firms and transformed the fund into a major venture investor.
Secondaries Volumes Hit New Records in 2025
Both managers and their investors are tapping the secondhand market for liquidity
Source: Jefferies
These shifts have also helped attract senior talent. Last year, ADIC hired Ben Samild, the investment boss of Australia’s A$252 billion ($174 billion) sovereign wealth fund as its chief strategist. It also appointed Alain Carrier, a former CEO of private-markets firm Bregal Investments, as head of private equity.
One of the few cities controlling $2 trillion in sovereign wealth, Abu Dhabi is reshaping its investing ecosystem as the crown prince takes charge of a new entity that has absorbed its third-largest fund, ADQ.
Al Mazrouei is part of a cohort of Emirati executives tasked with advancing Abu Dhabi’s ambitions of pushing deeper into finance and technology. He began his career at Mubadala, before taking the helm at ADIC.
His appetite for different kinds of bets has been on show already.
The fund more than tripled its position in a Bitcoin exchange-traded fund during the third quarter. The disclosure came shortly before cryptocurrency prices fell sharply, in a stark reminder of the volatility that comes with embracing with such assets.
Still, the deal was minuscule relative to ADIC’s size and Al Mazrouei plans to stick to his methods.
“I want people to think very boldly, have extreme views and extreme thinking on investing,” he said. “Big institutions today have become process-oriented and processes kill innovation.”
ADIC is now considering investing in blockchain startups that Al Mazrouei thinks could fundamentally transform the financial system. Those investments will come with guardrails, and ADIC will look to commit small amounts across several firms, hoping a few emerge as winners.
“You can apply the same model to different industries — defense, artificial intelligence or crypto,” the executive said. “If we lose $2 million or $3 million, it’s not going to kill us but if one or two of these companies become successful, they know we are there from the beginning and that makes a big difference.”
