Dubai-based investment management and advisory firm Magellan Capital haslaunched a USD 975 mn multi-strategy hedge fund, marking a scale-up from its USD 700 mn soft launch in 2024. Ahmed Omar (LinkedIn), CEO and CIO of Magellan Capital, will lead the fund.

BACKGROUND- Magellan Capital first outlined plans in 2024 for a USD 700 mn multi-strategy hedge fund, which Bloomberg said at the time would rank among the UAE’s largest hedge fund debuts. Preqin data showed that fewer than 5% of hedge funds globally raised more than USD 500 mn that year.

Who’s involved? The vehicle is fully anchored by in-house capital from Magellan’s ultimate beneficial owner. We previously reported that the fund’s seed capital came from the family fortune of Magellan owner Hassan El Ali, whose family founded and sold Zakher Marine International to Adnoc Logistics & Services for USD 1.1 bn two years ago. The fund is open to institutional investors, family offices, and high-net-worth individuals.

Fund details: The Magellan Absolute Return fund marks the first time the firm is bringing on third-party capital, and will tap into emerging market credit, long-short investing, and long-only equities. The original plan was also to capitalize on arbitrage prospects between producers and suppliers, former Magellan Capital portfolio manager Britney Lam said at the time.

Remember: The firm has courted some controversy

The same Britney Lam who left Magellan in October 2024 went on to file complaints with the DFSA and UK Financial Conduct Authority (FCA), alleging that Omar concealed losses and blocked staff from raising risk concerns. At the time, the firm said it wasn’t holding or managing client assets, hadn’t been contacted by regulators, and was not currently being regulated by the FCA.

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