Investors seeking strong returns in the current economic landscape should focus on investments that address specific problems and align with national strategic interests, according to a veteran of the global private markets.
Hazem Ben-Gacem, founder and chief executive of Abu Dhabi-based BlueFive Capital, told CNBC at the SuperReturn Asia conference in Singapore that smart money in the Middle East is increasingly directing capital toward government-aligned initiatives. “My recommendation is: don’t go with a fund, go with a solution,” Ben-Gacem said, emphasizing sectors such as food security, defense, infrastructure, automation, and robotics.
The strategy appears to be resonating with sovereign wealth groups, Ben-Gacem noted, adding that “that actually is exactly what those sovereign groups are looking for, and for that capital is available.”
BlueFive, which was established in November 2024, reported $15 billion in assets under management as of June 30. The firm recently made high-profile moves, including closing a deal earlier this month to acquire a 30% stake in Bugatti Rimac from Porsche. In July, it co-led a $3 billion funding round for Kling AI, a China-based artificial intelligence video generation company that was valued at $18 billion.
Ben-Gacem also highlighted the growing influence of geopolitics on investment performance. He stated that geopolitical factors have become a major variable affecting returns, particularly in regions such as the Middle East, Europe, Asia, and China. “The geopolitics are such that every single assumption you can have in the use case can very much fall apart,” he warned.
Every assumption falling apart sounds pretty scary. It feels like traditional diversification is dead if you can’t predict which conflicts will disrupt supply chains.
The Bugatti Rimac deal is fascinating. I wonder how an AI video startup fits into this strategic solution narrative? Seems like a mismatch.
Wait, BlueFive only launched last November? That seems incredibly fast to be managing fifteen billion dollars. Are they scaling responsibly?
I agree that focusing on national security and food security is smarter than blind fund chasing. Geopolitical risks are too high to ignore.