Abu Dhabi investment firm Lunate takes 40% in ADNOC Oil Pipelines, buys stake from Blackrock, KKR

Dubai: A global investment firm Lunate has taken a 40 per cent stake in ADNOC Oil Pipelines llc through one of its funds. The stake was bought from institutional investors BlackRock and KKR.

ADNOC Oil Pipelines operates onshore and offshore midstream crude oil pipeline infrastructure assets and is part of the broader ADNOC portfolio. 

The acquisition - by Lunate’s Long Term Capital Fund - aims to provide investors with attractive cash yields and long-term capital appreciation. This was done through the purchase of a 100 per cent stake in a special purpose vehicle jointly held by BlackRock and KKR managed funds. (The latter two made their their investment in AOP in 2019.)

AOP was established in 2019 to lease ownership interests in 22 pipelines from ADNOC for 23 years through a concession agreement.

The pipelines include 17 onshore and 5 offshore pipelines across the region, covering 806 kilometres with a total capacity of 18 million barrels per day.

"AOP plays an important role in global energy markets by connecting energy reserves to export terminals, thereby ensuring energy supplies for key customers globally," said a statement.

Lunate’s investment in AOP aligns with our long-term capital strategy to identify and invest in premium infrastructure assets. It also presents an opportunity to invest in a core Abu Dhabi asset and demonstrates our confidence in the UAE economy

- Murtaza Hussain, Managing Partner at Lunate

Alt-investments

An Abu Dhabi-based entity, Lunate has crytallized itself into global alt-investment manager with $105 billion of assets under management.

It invests across the private markets spectrum - including buyouts, growth equity, early and late-stage venture capital, private credit, real assets, and public equities and public credit.

Lunate aims to be 'one of the world’s leading private markets solutions providers through SMAs (separately managed account) and multi-asset class funds'.