ADIA History and Negative Press

Goals

To understand history, background, and any negative press coverage on ADIA.

Early Findings

HISTORY

  • ADIA was established in 1976 by the Government of Abu Dhabi as an independent and public investment institution.
  • The institution is headquartered in Abu Dhabi, United Arab Emirates.
  • At inception, Equity & Bonds, Treasury, Finance & Administration, Real Estate, Local & Arab Investments departments were created.
  • Currently, ADIA now “manages a diversified global investment portfolio across more than two dozen asset classes and sub-categories.”
  • The institution invests directly in global financial markets through a network of carefully selected external managers, alongside trusted partners.
  • ADIA “does not actively seek to manage the public companies in which it invests.”
  • The insitution currently has employees from more than 65 nationalities.

MISSION

  • The mission of the institution is “to sustain the long-term prosperity of Abu Dhabi by prudently growing capital through a disciplined investment process and committed people who reflect ADIA’s cultural values.

NEGATIVE PRESS COVERAGE

  • ADIA, in a June 2008 article by Reuters, “increasingly favors passive investments such as funds that track the performance of a specific stock index over actively managed funds, which frequently fail to measure up.” The institution had halved the number of hedge funds in its portfolio.”
  • In December 2009, the Abu Dhabi Investment Authority filed a fraud claim against Citigroup.
  • An article by Reuters published in 2013, read “Abu Dhabi fund loses crisis-related arbitration against Citigroup.” In this case, Citigroup Inc (C.N) prevailed in the arbitration pursued by Abu Dhabi Investment Authority over the sovereign wealth fund’s $7.5 billion investment in 2007 to shore up the then-struggling bank during the subprime mortgage meltdown.
  • In September 2019, Atlico, a property-focused financier sponsored by ADIA defaulted on interest payments of Rs 19.97 crore, causing its liquidity position to worsen
  • In an article published by CBNC in May 2019, “ADIA had faced competition from rival buyout funds and some industry players including a consortium of Advent and Cinven, as well as U.S. private equity firm KKR & Co Inc and European fund PAI Partners.”

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