Bahrain’s sovereign wealth fund, Mumtalakat, has acquired a strategic minority stake in BlueFive Capital, a fast-growing Abu Dhabi-based private equity firm, according to a report by Reuters citing an announcement by the SWF on Monday.
The deal underscores the growing appeal of emerging alternative asset managers in the Middle East to regional sovereign wealth funds seeking exposure to long-term private equity returns without building in-house capabilities.
While financial terms and stake size were not disclosed, the investment aligns with Mumtalakat’s strategy of backing high-growth investment firms with regional expertise and global aspirations.
Founded in 2024 by Hazem Ben-Gacem, a former co-CEO of Investcorp, BlueFive currently manages over $2.6bn in assets across Bahrain, London, Abu Dhabi, and Beijing. The firm recently closed a $2bn fund focused on mid-market buyouts and growth equity opportunities across the Gulf Cooperation Council (GCC), tapping into increasing regional demand for capital deployment into diversified, non-oil sectors.
The firm is chaired by Sheikh Mohamed Isa Al Khalifa, former CEO of Bahrain’s national pension fund.
Mumtalakat’s move follows similar transactions by other Gulf sovereign wealth funds, including Mubadala, which acquired a controlling stake in US-based Fortress Investment Group last year.
While Mumtalakat manages a comparatively smaller $18bn portfolio, it has increasingly leaned into co-investment and platform equity strategies, often targeting partnerships that enhance Bahrain’s financial ecosystem and deepen regional capital markets.
