Magellan Capital to Launch $700 Million Hedge Fund, Bolstering Dubai’s Growing Hedge Fund Hub

Magellan Capital Holdings Ltd, based in Dubai, is set to launch a $700 million multi-strategy hedge fund next month, marking one of the largest hedge fund debuts in the United Arab Emirates, as reported by Bloomberg.

According to Britney Lam, the firm's head of long-short equities, the fund will primarily focus on equity and credit strategies. The capital for this new venture comes from the family wealth of Hassan El Ali, the founder of Zakher Marine International, which was sold to a subsidiary of the Abu Dhabi National Oil Company (ADNOC) two years ago. Industry tracker Preqin notes that only 5% of hedge funds globally have raised $500 million or more in seed capital this year.

Lam further explained that the firm plans to approach key allocators, including family offices and sovereign wealth funds in the region, after establishing a solid track record over the next 12 months. “I want to ensure our investment process is robust before attracting significant external capital,” Lam added.

The launch of Magellan’s hedge fund is a notable example of Dubai’s rising prominence as a global hedge fund hub. The city is now home to 37 global hedge funds managing at least $1 billion each, with 25 of these firms establishing operations since 2022, according to data from With Intelligence.

Magellan, which has offices in Dubai, Abu Dhabi, and London, has seen significant growth over the past year, doubling its staff to more than 20 professionals across both public and private markets operations. This expansion highlights the firm’s commitment to strengthening its market presence as it prepares for the launch of its new fund.