Abu Dhabi investment firm Chimera Capital has closed its second venture capital (VC) fund at USD 10 billion, as it looks to find multi-million dollar opportunities in “growth-stage” companies.
Tech focus
The new fund, Alpha Wave Ventures II, will focus on the financial tech, artificial intelligence, life sciences, consumer internet and B2B sectors. The fund is co-managed with U.S. alternative asset manager Alpha Wave Global, formerly known as Falcon Edge Capital.
“Put them together, and you have a large fund that can basically invest on a larger scale in basically growth stories,” said Karim Radwan, Chimera Capital’s chief investment officer.
Local partners
The limited partners in the fund are all local and regional investors, Radwan said, though he declined to name them. According to Radwan, the fund will potentially invest up to USD 100 million in growth-stage companies, typically between series A and pre-initial public offering (IPO).
Chimera Capital is owned by Chimera Investments LLC, which is part of Royal Group, an Abu Dhabi investment firm chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and a brother of Abu Dhabi Crown Prince Mohammed bin Zayed.
Its first fund, Chimera Global Fund I, closed in October at USD 75 million with participation from Mubadala Capital, a unit of Abu Dhabi sovereign wealth fund Mubadala Investment Company. Chimera Investments seeded the fund with USD 25 million. Mubadala Investment Company was recently named 2021 Fund of the Year by Global SWF.
Alpha Wave Ventures II will aim for a return between three and five times, with companies lower in that range the closer they are to an initial public offering, Radwan said.
