ADIA to invest up to $1.5 billion in Singapore business group

A. SREENIVASA REDDY (ABU DHABI)

Abu Dhabi Investment Authority (ADIA), a sovereign fund of Abu Dhabi, will invest up to $1.5 billion in GLP Group, a Singapore-based thematic business builder, investor and investment manager, according to statements from both companies. ADIA will channel the investment through one of its subsidiaries to support the group’s expansion.

GLP said the investment represents a significant milestone in its growth trajectory and a new chapter in the longstanding relationship between the two institutions. The transaction is described as a strong institutional endorsement of GLP’s differentiated business model and its ability to deliver sustainable value creation.

The deal begins with an initial capital deployment of $500 million, enabling GLP to capitalise on significant market opportunities. The company said the fresh funds will accelerate its mission of creating scaled platforms across logistics, digital infrastructure and renewable energy – sectors benefitting from structural tailwinds such as the expansion of e-commerce, the adoption of AI and cloud technologies, and the global transition towards sustainable energy.

“Building upon several years of successful fund-level collaboration between GLP and ADIA subsidiaries, this transaction is an endorsement of GLP’s execution capabilities and track record of delivering value in high-growth sectors,” ADIA said in a statement.

“GLP’s strong financial position will be enhanced by ADIA's initial capital deployment of $500 million, which is expected to accelerate the Group’s mission of creating differentiated, scaled platforms across logistics, digital infrastructure and renewable energy,” it added.

Ming Mei, Co-Founder and CEO of GLP, said: “We are delighted to strengthen our relationship with ADIA in line with our strategy of creating scalable partnerships with world-class investment partners. With this enhanced capital base and strategic alignment, this investment further positions us to accelerate growth and take advantage of the significant market opportunities we see associated with the secular expansion of new economy sectors in which we operate.”

Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, said: “We have successfully invested in GLP funds for a number of years. This transaction will allow us to deepen that relationship, support the company in its next phase of growth and scale our exposure to new economy sectors, in line with our strategy.”

GLP, through its asset management arm GLP Capital Partners, manages about $80 billion of assets and has a track record of building platforms across logistics, digital and renewable energy. Established in 1976, ADIA is a globally diversified institution that invests funds on behalf of the Government of Abu Dhabi with a focus on long-term value creation. ADIA has also been increasing its exposure to private equity as part of a shift in its investment strategy.