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Abu Dhabi-based alternative investment firm Lunate is considering raising $5 billion in subscription financing from both international and regional banks.
The fund, which launched last year, is weighing taking on the debt to give it ‘dry powder’ for potential new deals, according to sources cited in a Bloomberg report.
Talks are said to be ongoing, and Lunate may decide against the borrowing, the report said.
In April, Lunate acquired 40% in Abu Dhabi state oil company ADNOC’s pipeline assets as well as a joint stake in ICD Brookfield Place in Dubai International Financial Centre (DIFC).
Subscription financing allows faster access to capital, providing a potential competitive advantage against other investors, as funds can move as quickly as one business day, instead of 10-15 often required for capital calls.
Lunate currently has $105 billion in assets under management according to its official website.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
