UBS, Abu Dhabi Invest AD cancel $250 fund

* username: rupertbu

UBS Global Asset Management and Abu Dhabi's Invest AD liquidated a $250 million fund targeting Middle East infrastructure due to weak investor appetite, people familiar with the matter said.

"It's not going ahead, there are no assets in the fund, the commitments made by investors are being returned," one person familiar with the matter told Zawya Dow Jones. "It's not a great fundraising environment for that kind of illiquid infrastructure fund. Now investors are looking for something more liquid."

Invest AD, formerly known as Abu Dhabi Investment Co., and UBS raised $250 million for the fund in a first close in April 2009. However, the people said the fund's timing was ill-judged and had it been launched before the economic downturn it may have succeeded.